Are McCarthy and stone in financial trouble?
McCarthy & Stone falls into the red as COVID-19 nearly halves sales. 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.
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.
- The purchase price. One of the biggest downsides is cost. ...
- Service charges and ground rent. ...
- Resale value. ...
- Failure to accommodate your specific health needs. ...
- Exit fees. ...
- Not everyone's cup of tea.
Churchill is independently owned by Spencer and Clinton McCarthy, so family values are embedded throughout the business, meaning passion, pride and quality underpins everything we do.
McCarthy Stone creates award-winning retirement properties for sale or for rent — but it's the people that turn our developments into fun-filled, friendly, communities. We are experts at creating spectacular, safe, low-maintenance, private retirement apartments, bungalows and cottages, in superb locations.
We are pleased that our in-house McCarthy Stone Resales team achieves a net price increase on average for the properties they resell. For example, for properties bought new in the last three years and since resold, the net increase averages 6%.
Most retirement flats tend to hold their value and therefore sell at a similar price to that of when you bought it.
There are often age restrictions on retirement properties, which can make them more difficult to sell. McCarthy & Stone's website says it offers three type of developments, which are exclusive to over-55s, over-60s and over-70s respectively.
The root of the problem is the simple fact that most retirement homes cannot be sold on the open market, leaving owners at the mercy of management companies. Their service charges make many retirement properties a costly liability even if they are owned outright.
The disadvantages of retirement communities include they aren't cheap, could be in a less than an optimal location, smaller living area, lack of diversity, cliques/gossip and restrictive/excessive rules.
