FAQs - Retirement Property Questions

We are always completely transparent about our service charges and we will talk you through all the costs involved in living in a McCarthy Stone retirement property before you buy. You’ll receive a service charge leaflet, and your sales consultant will sit down with you to help you to review what’s covered in the service charges and compare your day-to-day running costs with those in your current home. Our sales consultants ensure that customers have a detailed knowledge of ongoing costs before you buy your new home.

• In many cases, service charges are lower than like-for-like costs in a purchaser’s previous property, so homeowners rarely have difficulties paying.
• Heating and running costs are usually lower than in homeowner’s previous home due to our modern energy efficient construction methods, low maintenance properties and the more manageable size of the homes

You can also take advantage of our free Entitlement Advice Service – you may be surprised to discover how much money you are entitled to.

Call 0800 201 4811 or contact us online to learn more about our service charges.

Service charges cover the day-to-day costs of management and maintenance within our retirement developments, such as the heating and cleaning of communal areas, buildings insurance and redecoration. They are tightly regulated by national legislation and must relate to the management services provided within the development, not to construction or repair costs. Our service charges are ‘pass through’ costs which we do not mark up in any way. They are the costs of running your development.

Our service charge varies from development to development reflecting their different sizes and facilities, but they are calculated in the same way across the country.

Costs in Retirement Living PLUS developments are higher than in Retirement Living developments to reflect the increased staffing costs, the provision of care and lifestyle support packages, and the table-service restaurants/bistros provided on-site.

Call 0800 201 4811 or contact us online to find out more about our service charges.

That depends on your individual circumstances, but in many cases, service charges are lower than like-for-like costs in a previous property. Our research shows you could save over £2,300 a year on household bills in a McCarthy Stone retirement apartment when compared to a typical home*. Read about how we can save money on your cost of living.

Call 0800 201 4811 or contact us online to find out more about our service charges.

*Typical net saving when running a McCarthy Stone Retirement Living apartment when compared to the cost of running a typical home is £2,312 per year. Source: Internal research carried out by McCarthy Stone, 2022. Based on information from Address Intelligence using a combination of census, EPC, and planning permission.

In a Retirement Living development for the over 60s, the service charge covers things like:

• The House Manager
• 24-hour emergency call system
• Intruder alarm
• Camera door entry
• Buildings insurance
• Maintenance
• Water rates
• Sewage rates
• External window cleaning
• Heating of communal areas

In a Retirement Living PLUS development for the over 70s, the service charge includes all of the above, as well as additional assisted living facilities like:

• Managers on-site 24/7 for your peace of mind
• The running of the subsidised on-site restaurant/bistro (with a small additional cost payable per meal)
• One-hour of domestic support per week is included
  - If you need extra help, our independent lifestyle support services are totally flexible and can be adapted to suit individual needs. You only pay for what you use.
  - Homeowners are under no obligation to take care packages from us.

Call 0800 201 4811 or contact us online to find out more about our services charges.

The service charge budgets represent the costs that we expect to incur in a normal year, with a full retirement development. We aim for them to be as accurate as possible and we try to keep annual increases in line with inflation, although certain costs like energy prices can have inflationary pressures that are outside of our control. Typically, our retirement communities have shown a slight surplus which is refunded each year to homeowners.

Call 0800 201 4811 or contact us online to find out more.

Yes, but we try to keep annual increases to our service charges in line with inflation although certain costs like energy prices can have inflationary pressures that are outside of our control.

Call 0800 201 4811 or contact us online to find out more.

If you do get into financial difficulties, we will work with you to agree on a way forward. We also offer all of our customers support, so they don’t miss out on the money they are entitled to. Over the past two years, our Entitlement Advice Service has helped our customers claim more than £1 million a year in unclaimed benefits, advising on things like Council Tax benefits, Attendance Allowance, and state pensions. For example, some costs, like service charges are sometimes covered by Pension Credit.

Call 0800 201 4811 or contact us online to find out more about our free and confidential Entitlement Advice.

Every year the service charge is agreed in consultation with customers in our retirement villages and developments through an open-book budgeting process. The service charge pays the salaries of the house managers and estate management teams, who we employ, but for everything else – like window cleaning, gardening and lift maintenance, for example, we get competitive quotes.

We do our very best to negotiate the best cost with third-party service providers on behalf of our customers. As part of our system of checks and controls, we regularly monitor service charges against current market practices and third-party providers to ensure we offer competitive rates.

At some of our most recent developments, the service charge also includes the cost of heating the apartments.

A full breakdown of the service charge budget is available from our sales consultants and managers at all new retirement communities. We have a simple chart to help customers understand the service charge during the sales process.

Any questions? Call 0800 201 4811 or contact us online.

Yes. It is important that the service charge continues to be paid to maintain services across the development and for the security of the other homeowners. But if a homeowner or their family is experiencing difficulties paying, we are here to help and will do our best to support them.

Any questions? Call 0800 201 4811 or contact us online.

A sinking fund, otherwise known as a contingency fund, is a specific fund kept in the retirement development’s own bank account. It is there to benefit all homeowners and is used to pay for the replacement of carpets and furniture in shared areas, as well as longer-term repairs of roofs, window frames and lifts. We believe it is the best way to protect homeowners from unexpected costs like a major refurbishment or structural repairs.

It is held in trust and used only for the maintenance of that retirement development. It cannot be accessed by McCarthy Stone for its own purposes.

The service charge includes a small contribution to the contingency fund, but to keep it to a minimum, the fund is ‘topped up’ by a one-off charge of a small percentage of the resale price upon the sale of the retirement property.

Leases prior to October 2014

We will charge a concessionary rate (irrespective of the provisions in the lease, which may be higher) of one month’s rent for each year that the apartment is sublet (or pro-rata for less than a year).

This is a concession from the terms of the lease which are in essence one month’s rent for each six month sublet period. This concession will apply for a maximum period of two years, after which time we will revert to the terms of the lease.

These fees are paid into the development’s sinking/contingency fund and are for everyone’s benefit.

If you rent out your retirement housing:

For leases from October 2014

The subletting contingency fee has been reduced to a small percentage of the annual rent (or pro-rata for under-letting of less than one year). Where the underletting is for more than a year, the contingency fee is a small percentage of the annual rent payable annually on the anniversary of the commencement of the term.

There is also a small administration fee to cover the cost to check that the incoming occupier meets the terms of the lease or deed of conditions (i.e. meets the age criteria and is capable of leading an independent life) and provide information about the development, the service charge and insurance.

Any questions? Call 0800 201 4811 or contact us online.