“But isn’t that because your properties are sold above market price anyway?” asked Mr Lewis. McCarthy’s shares leaped 6% on the news today. It has to be acknowledged that the purpose of taking management “in house” has largely been vindicated. 3. Residents were systemically price fixed. Mr Fenton replied: “There is a small premium [above local market prices], but not very much, frankly, in terms of the payment of this. Advising leaseholders. It may all prove to be too tempting for those that own McCarthy & Stone. Ditto Recycling & Litter We are proud to say we have a trusted, quality product. We have been working hard, us and all the other retirement housing builders, to try and increase our output. Churchill Retirement Living. “Ground rents are either for a service or they are not, and if not – which they aren’t – then they should go.”, What would be effect on the retirement housing market of a ground rent ban, asked Mr Bonsignore, “The interesting new companies that are coming into this sector don’t believe in this model. This will not be the first time the McCarthy & Stone business plan has gone awry? has been neglected by Parliament for so long ……. Even with second-hand property for sale & rent , it is a nightmare with Estate Agents Ditto Traffic congestion Ditto Vehicle Pollution This will vary but be prepared to pay in the region of £3,000 to £4,000 per annum and expect it to rise annually. They say that their business model does not work if ground rents are taken out. It is to keep a Government in power that will allow ground rents to be collected for no reason at all. Broadly put, a lease agreement is a contract between two parties, the lessor and the lessee. This figure is up to date to May 2018. but leaseholders are concerned it is selling freeholds to anonymous buyers … McCarthy and Stone complains about ‘right to reply’ to LKP / Better Retirement Housing articles McCarthy and Stone told The Times yesterday that there would be fewer of its form of retirement flats if the government reduces ground rents to a minimal …, Mr Fenton continued: “They use the income to fund their pension obligations and they provide us with the cash that we are able to reinvest back in buying more land and more developments.”. “The second point is, what are ground rents for? 2.I notice he avoided saying that the continuing repair, maintenance and refurbishment of the communal areas is paid for by the residents out of the Service Charges. If you don´t want to pay Ground Rent …….. why did you buy the Lease ? “Our ability to buy land will be reduced [if we are not exempted from the ground rent ban] and that will affect supply. We depend on individuals for the majority of our funding. Government will cave in to retirement house builders over ground rents, says Times APPG July 11: Robust debate over retirement ground rents and event fees Leasehold Knowledge Partnership Purchased a new build Churchill Retirement apartment 8 years ago. Financial highlights. Ostensibly this is to maintain good and consistent standards of management the reputation of. The lessor is the legal owner of the asset; the lessee obtains the right to use the asset in return for regular rental payments. 2012-02-15 £269,950, 37, St. Richards Lodge If M&as cannot charge their £600 annual ground rent then there is a prospect of the business being sold off to someone like Tchenquiz or managed by a company like Peverel. In the USA they have LEMON LAWS that concern CRAP NEW & USED CARS. Mr Lewis pointed out that MoneyBox research last year showed that the average McCarthy and Stone flat sold for 17% less when it was sold second hand. Wisely, Brokenshire last night said while he was minded to cap ground rents at £10 a year, retirement homes would be exempt. Its members included posh private retirement housing providers such as Audley, and outfits such as the ExtraCare Charitable Trust and the Methodist Housing Association. Nothing at all,” she said. 2015-09-25 £175,000, 24, St. Richards Lodge Leases with high ground rent - The unforeseen AST It is becoming increasingly common to see leasehold properties with high annual ground rent or escalating ground rent. 2011-07-29 £196,000, 16, St. Richards Lodge “In the event that we are included in that ban we cannot pass that cost on to our customers. of these areas are covered as you say, by the residents, its a win win situation for Management. The government is poised to exclude retirement house builders from the much delayed ban on ground rents. It isn´t perfect TODAY : if there is SEVERE DELAY to a build or the specifcation Avoiding disasters. And the corollary of that is that we will end up employing less people.”, Land Registry sales history of St Richard’s Lodge, Chichester, built by Churchill Retirement Living, Apartment 14, St Richard’s Lodge, Spitalfield Lane, Chichester, PO19 6SJ arises. These LEMONS can be taken back to the Showroom for a FULL refund. Make Churchill your new home. MoneyBox established that the freehold of an average 40-apartment site would sell for around £600,000, or £15,000 per apartment. The need to raise extra funds has been flagged up. 2017-10-12 £275,000 Sebastian O’Kelly, of www.BetterRetirementHousing.com, told the programme: “How can they possibly have an exemption from the ground rent ban? Churchill Retirement donates £150,000 to Conservatives. >Check for available units at Churchill in Minneapolis, MN. Headed by leading retirement builder McCarthy and Stone and Churchill Retirement (which is privately owned by the McCarthy family), retirement house builders have been lobbying hard for an exclusion. Indeed, the trade body Association of Retirement Community Operators opposes ground rents. 2011-04-28 £184,950, 29, St. Richards Lodge “For us in the retirement industry ground rents are very important because we provide a significant amount of shared services within the developments which have to be paid for. We are proud to say we have a trusted, quality product. Kings Place The problem is with the volume housebuilders, who have depended on ground rents in the past. However, those changes impose inherent future risks to the company and their residents. Mr Fenton replied: “We have been tracking the value of our properties sold over the last five years that we manage ourselves which we have been doing since 2010. Collected by Millstream Management every 6 months The Churchill Retirement website claims their retirement blocks are managed by an “independent” company Millstream Management Services owned by Churchill Retirement . Rosemary Marshall, 76, has seen the ground rent of her one-bedroom flat rise from £550 to £655.86p a year. 2011-10-27 £187,950, 33, St. Richards Lodge 2011-08-31 £279,950, 42, St. Richards Lodge deposited refunded in full but not Legal or other costs.. Named as the flagship development of Churchill Retirement Living, the lodge is amongst some of the most exclusive and desirable properties in the world. Ground Rent: £566 per annum. Public pledge for leaseholders We, the undersigned Freeholders, pledge to: For existing leaseholders: 1. Service Charges: Approximately £1613 per annum, includes insurance, cleaning, lodge manager, careline monitoring, water, sewerage. It must be a constant worry to those elderly residents who understand the situation, but my experience is that many have not a clue about leasehold and accept the good and happy news that the Management Companies tell them. To achieve victory in the leasehold game where you are playing against professionals and with rules that they know all too well - stay informed with the LKP newsletter. We communicate it to our customers and they know exactly what they are paying.”. outdated and then a MSP started a review process that finally became Law. Didn’t stop Firstport flogging off the leaseholds of McCarthy & Stone development house manager’s flats did it? Dumb Arses Everywhere : New Build Flats & House that are sometimes CRAP quality. Sign Up for Newsletter. “The ground rents we are all facing are a massive increase for pensioners, many of whom had no idea it was coming.” It is a similar story at St Richard’s Lodge, Chichester, a Churchill site. With Ground Rents of £600 per annum and increasing, a £150000 donation is a small price to pay. 2009-05-15 £230,950, 21, St. Richards Lodge Avoiding disasters. [1] Property, buildings and vehicles are common assets that are leased. The programme began with an interview with “Rosemary”, from Chichester, who bought her retirement flat new from Churchill Retirement Living for £236,000 and has seen ground rents rise from £550 to £655 – while at the same time its value has fallen to £150,000, she claims (see Land Registry data on re-sale prices at St Richard’s Lodge, Chichester, below). We only have to look back in history to see what happened the last time McCarthy & Stone slid into financial pressure when connected with Peverel/FirstPort and the Tchenguiz Family Trust. 2011-07-06 £169,950, 18, St. Richards Lodge The £15,000 …”. Ditto Keith Lemon. 2012-05-31 £212,000, 20, St. Richards Lodge A huge ‘thank you’ to LKP for an outstanding service appreciated by so many. Exposing abuses. Unnecessary work was carried out. The following advertisements are from firms that seek business from leaseholders.Click on the logos for company profiles. The programme began with an interview with “Rosemary”, from Chichester, who bought her retirement flat new from Churchill Retirement Living for £236,000 and has seen ground rents rise from £550 to £655 – while at the same time its value has fallen to £150,000, she claims (see Land Registry data on re-sale prices at St Richard’s Lodge, Chichester, below). 2009-11-06 £219,950, 27, St. Richards Lodge 2016-08-16 £255,000, 32, St. Richards Lodge Central location close to essential amenities, local shops and public transport. They don’t want to pay big service charges. 2011-11-30 £189,950, Category: Ground rent scandal, HomeSlider, Latest News, McCarthy and Stone, News, PressTag: BBC R4 MoneyBox, Churchill Retirement Living, McCarthy and Stone. McCarthy & Stone have taken development management “In house”. 5th Floor This one bedroom GROUND FLOOR retirement apartment is located in Springfield and is offered for sale with vacant possession and no onward chain!! Spencer McCarthy, who runs Churchill Retirement Living, thinks a “reasonable ground rent on fair terms” is vital for funding communal areas. Previously McCarthy & Stone developments were funded by debt to such an extent that at their nadir they ended up nearly £900,000,000 in debt (before being re-financed and effectively run by the banks) Our responsibility is to develop more homes for people. MoneyBox then asked whether this loss would matter much: McCarthy and Stone only expects to build 2,100 units this year and there are one and half million retired people who want to downsize. Costs for those services rocketed. 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