What are the downsides of McCarthy and stone?

What are the downsides of McCarthy and stone?

Most of the problems relating to McCarthy & Stone flats go back to before 2010, when company policy was to sell off freeholds to financiers who were then able to increase service charges. This, in turn, made many properties unattractive to potential buyers.

Are McCarthy and stone in financial trouble?

Retirement house builder McCarthy & Stone reported a loss of £25m in the first half of the year, with the coronavirus pandemic blamed for sales falling by 44%. The firm reported an underlying loss of £24.8m, down from a profit of £21.3m in 2019.

Who has taken over McCarthy and stone?

Lone Star
Retirement housebuilder McCarthy & Stone is to be taken over by US private equity group Lone Star at the end of today after the £647m bid received its final legal approval.

How does McCarthy and stone work?

Ground rents are payable on all leasehold properties in England and Wales. McCarthy & Stone’s ground rents are fair and stable and set at the outset of the development. They are fixed for 15 years. Increases are then linked to inflation, and are compounded yearly, on 15-year rent review terms.

Do McCarthy and Stone have restaurants?

Every day of the year our homeowners can enjoy a freshly prepared meal at a modest cost in the on-site table service restaurant or Bistro.

Why are retirement homes not selling?

The Covid-19 pandemic has made the market even tougher, as older people have been shielding at home and reluctant to view property. “Retirement homes have always been hard to sell, but in the last year, they have been particularly difficult, if not impossible,” says one agent in Greater London.

Do retirement homes lose value?

According to the research, 51% of retirement properties built and sold between 2000 and 2010, and then sold again between 2006 and 2016, suffered a loss in value. For those properties which declined in value, the average loss was 17%. For some, the falls are much steeper.

Why are retirement flats not selling?

“According to the estate agents, retirement apartments are not selling due to the pandemic, making them unattractive places to live for fear of catching the virus.

Where is McCarthy and stone based?

Bournemouth, England
McCarthy Stone

Industry Housebuilding
Founded 1977
Headquarters Bournemouth, England, United Kingdom
Key people Paul Lester (Chairman) John Tonkiss (CEO)
Revenue £725.0 million (2019)

Can you use a retirement flat as a holiday home?

“Opting in early and using your retirement property as a second home means you can really get to know the place and make the permanent move when you are ready,” says Clare Bacchus, PegasusLife’s customer experience director. There is also the option of using your retirement home as your holiday home.

Does McCarthy and stone charge exit fees?

Will I be charged an exit fee? McCarthy Stone is proud to be one of the few retirement companies not to charge exit fees that come back to the developer as profit. However we do charge a 1% sinking fund contribution (known as the contingency fee), which is paid on resale.