A Family’s Struggle with a Retirement Flat
Relatives of a care home resident have raised concerns about the financial burden they face after their loved one was enticed into purchasing a retirement flat. The situation has led to a complaint with the Property Ombudsman, highlighting the challenges families encounter when dealing with such properties.
Jean Martin moved out of her one-bedroom retirement flat in Wilton Court, located in Kenilworth, Warwickshire, and into a nearby care home, Kenilworth Manor, in November 2018. She passed away three years later at the age of 91. Her family claims they have inherited a prolonged financial struggle from selling the property, which was put on the market in February 2019, along with thousands of pounds in service fee charges from the property company McCarthy Stone.
Jean’s case is not unique. Many relatives find themselves burdened with the responsibility of selling retirement homes, which are restricted to people over a certain age. These families often face the challenge of finding a buyer in an already saturated market, as well as the debt from accumulating fees that continue even after their loved one’s death.
The flat remains empty seven years after it was put on the market, with a contractual clause that charges the family rolling service charge fees despite the flat sitting empty. The family has exchanged contracts three times before and is currently in the process for the fourth time, aiming to sell the property for £160,000, with hopes of closure in April.
Jean’s niece, Sheila Pitman, from Bottesford, Leicestershire, described the experience as “horrendous,” noting the family faces £43,000 in fees and brutal cuts to the flat’s selling price.
The flat was initially put on the market for £285,000 but has since dropped to £175,000. The family claims that 30% of the share is owned by McCarthy Stone. After being unsuccessful with the complaints service of the company itself, the estate has brought the case to the Property Ombudsman.
Ms. Pitman shared that her aunt, who never married or had children, was “very frugal on herself but very generous to her nieces and nephews.” She added that her aunt aimed to leave everything to them so they would have some money when she died, but that is no longer the case.
Jean immediately bought the one-bedroom property, selling her previous home on Southbank Road, Kenilworth, Warwickshire, when homes in Wilton Court across the road went on the market in January 2015. She moved into the McCarthy Stone flat the same day she sold her property.
Ms. Pitman said her aunt, who worked for Warwick District Council, was “very fascinated with it” and “decided it was for her.” She added that if her aunt had stayed in her old flat, she would have been perfectly okay. She was “wooed by McCarthy Stone when they opened and looked like a five-star hotel.”
Wilton Court is described on the company’s website as “an elegant retirement living,” offering “flexible care,” gardens, and an in-house restaurant. Jean’s nephew, Paul Martin, from South Wales, told the Daily Mail that his aunt was “very excited about it because she thought it was going to be utopia.”
The estate claims that McCarthy Stone is deliberately keeping the flat empty and unsold so they can accumulate the service fees charged each year. These service charges include everyday costs of running the property, a contingency fund for maintaining the development, and a management fee. The everyday costs include a 24-hour service of on-site managers, a 24-hour emergency call system, and one hour of domestic support a week, among others.
The estate argues the fees are “unethical” as Jean no longer lives in the property and therefore does not use the facilities. They also noted that numerous other, most commonly bigger, flats have been sold while their aunt’s flat was on the market.
Mr. Martin said there “seems to be a lot of jiggery-pokery going on.” He added that if you buy one of these flats, it is very hard for your relatives who you pass it on to give any recompense. It seems like they had the whole thing was deliberately tied up with a lot of different rules.
Since January 2025, McCarthy Stone Resales said they have completed sales on ten apartments, while five properties are currently on the market spanning from £170,000 for a one bed to £210,000 for a two bed.
Experts believe potential buyers are turned away by restrictive contracts and a fear of communal living since the pandemic. They also noted an oversupply of similar properties on the market, with an estimation that more than 100,000 properties in privately owned retirement blocks are sitting vacant across England and Wales.
Nick Ash, managing director of firm W&P Legal, is assisting Jean’s family with the sale of the flat, and said the process has been a “total nightmare.” He told the Daily Mail: “The firm have been standing in the way at every step. They set the price, they cut the price and they act as estate agents. They are in complete control and they bleed estates and families dry.”
Mr. Ash said the firm has supported three or four families in similar situations to Jean’s estate.
A spokesperson for McCarthy Stone said: “We are pleased that this apartment in Wilton Court is now sold subject to contract. Our Resales team are committed to supporting all vendors and their families throughout the process as they look to resell their apartments. To ensure fairness for all homeowners, the service charge must continue to be paid on all apartments, including those that are vacant and awaiting sale. Maintaining full contributions from all apartments shares the costs fairly so no individual or group of residents are disadvantaged. Service charges are governed by legislation and cover the current and future costs of running our developments. The vast majority of these costs are passed to our homeowners at the same price it costs us to procure them. We don’t add any mark-up and vacant properties provide no additional financial benefit to McCarthy Stone.”
