So many empty Retirement Flats for sale in 1 development;any bright ideas for selling

pinksprout

I am trying to sell my late mother's one bedroom flat which is in a block of 52 one and two bedroom units in a McCarthy and Stone retirement development built in 1988. The flat has been on the market since September last year. However the slow down in the property market has seen the sale of retirement flats grind to a halt and there are now a total of 10 (out of 52) empty flats for sale in this one development. Prices range from £115,00 to £130,000 for the 7 one bedroom flats and the 3 two bedroom units are being marketed for £139,950.

In terms of making my Mum's flat saleable I have redecorated, recarpeted and fitted a new bathroom but as no one is viewing that makes no difference.

The managing agents are still getting their service charge, ground rent etc so they are not bothered that the development is gradually emptying of residents.

It seems a complete waste to have so many empty units. Does anyone have any inspiration about any company/charity/government/council agency that might be interested in buying up (or renting) one, or all, of these flats? The primary difficulty is of course that the flats are for the elderly and the main resident has to be age 60 (second residents can be age 55 or above).

Thank you for any feedback.

clutton_2

drop the price till it sells......

a friend of mine looked into investing in such properties, and the management charges were horrific.... that will put people off and you have no control over those....

Richard_Webster

Keep it and rent it out at least for the time being. Even paying the ground rent and service charges the return could be as good as that of a typical 3% building society investment.

There are usually too many new developments where gullible retirees who are downsizing are prepared to pay substantially more for a new flat and don't realise that perfectly good 20 year old flats are a lot cheaper.

The level of service charges etc put off fairly active 65-75 year olds who don't feel they need the common lounge and pull cord/buttons to contact a helpline if they are in distress. Why pay for that when they don't need it and an ordinary flat is cheaper on annual costs?

pinksprout

clutton wrote: »

drop the price till it sells......

a friend of mine looked into investing in such properties, and the management charges were horrific.... that will put people off and you have no control over those....

Thank you for your response. Yes, you are right; the management service charge and ground rent are £1,340 and £225 per annum respectively.

Unfortunately I am unable to drop the price without agreement from the other beneficiary. I don't think £5000 or even £10,000 would make any difference anyway as most potential buyers are downsizing and are therefore not struggling to up market. I am obviously reluctant to knock £20,000 off the price in order to tuck it under £100,000. The problem is the surplus of retirement flats in the area; there are a further 35 retirement flats (in 3 different developments) on the market within a 1 mile radius of the development that my mother's flat is in. By it's nature retirement housing is such a limited market and sadly the vast majority of these units are all standing vacant.

Thank you again.

pinksprout

Richard_Webster wrote: »

Keep it and rent it out at least for the time being. Even paying the ground rent and service charges the return could be as good as that of a typical 3% building society investment.

There are usually too many new developments where gullible retirees who are downsizing are prepared to pay substantially more for a new flat and don't realise that perfectly good 20 year old flats are a lot cheaper.

The level of service charges etc put off fairly active 65-75 year olds who don't feel they need the common lounge and pull cord/buttons to contact a helpline if they are in distress. Why pay for that when they don't need it and an ordinary flat is cheaper on annual costs?

Hello Richard, thank you for responding.

I wanted to put the flat straight on the rental market (limited though that would also be) last year but the other beneficiary is unwilling to do that for fear of complicating their tax liabilities. I did consider buying out the beneficiary but the rental market for retirement flats is also very limited and I didn't want the risk of owning an empty property whilst servicing a mortgage.

Again you are right about the new retirement developments. There is one about 2 miles away from my Mum's flat where one bedroom 'apartments' start at £219,950 with prices of the two bedrooms ranging from over £300,000 to £397,950. Gulp.

lincroft1710

pinksprout wrote: »

I don't think £5000 or even £10,000 would make any difference anyway as most potential buyers are downsizing and are therefore not struggling to up market. I am obviously reluctant to knock £20,000 off the price in order to tuck it under £100,000. The problem is the surplus of retirement flats in the area; there are a further 35 retirement flats (in 3 different developments) on the market within a 1 mile radius of the development that my mother's flat is in. By it's nature retirement housing is such a limited market and sadly the vast majority of these units are all standing vacant.

Thank you again.

Unless you make the price extremely attractive in comparison with other flats on the market, you have little hope of selling. Even if potential purchasers don't seem to have any difficulty in financing the purchase any money they can save will be a bonus especially as the interest rates on their savings are pathetic.

While the flat remains unsold you will have the service charges, ground rent, council tax and perhaps heating costs (stop flat getting cold and damp).

Oversupply will ultimately lead to price falls. If no one can sell prices have to fall. Sell first and take the smallest hit.

clutton_2

"" wanted to put the flat straight on the rental market (limited though that would also be) last year but the other beneficiary is unwilling to do that for fear of complicating their tax liabilities.""


his tax affairs should not be affecting you - why should he insist on leaving the flat empty if it could be let (even at a modest rent) and thus deprive you of an income also ?

lynzpower

lincroft1710 wrote: »

Unless you make the price extremely attractive in comparison with other flats on the market, you have little hope of selling. Even if potential purchasers don't seem to have any difficulty in financing the purchase any money they can save will be a bonus especially as the interest rates on their savings are pathetic.

While the flat remains unsold you will have the service charges, ground rent, council tax and perhaps heating costs (stop flat getting cold and damp).

Oversupply will ultimately lead to price falls. If no one can sell prices have to fall. Sell first and take the smallest hit.

have to agree, mccarthy and stone seem to embody the concept *and still they build*

Every M&S development Ive ever seen is still for sale, months, years, after being built yet they start a new site down the road

Running_Horse

As the inheritance is an unexpected and unwanted cash windfall, does it really matter what you get for it? It's not like you're selling your place to move on. Drop the price to £100,000 and get on with your lives. I wouldn't want it hanging over me for months or even years, waiting for the market to pick up.

mufi

Running_Horse wrote: »

Drop the price to £100,000 and get on with your lives.

Good advice. Perhaps an informal meeting to mull things over with the other beneficiary?

keith969

And the other 'beneficiary' isn't a beneficiary until the flat sells. Until then its just a hole for both of you to throw money into.