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Democorruptcy

Just broke my service charge record

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£139,950 two bed flat for sale in Llandudno, 125 year lease from 2002, ground rent £410 per annum, service charge £6,629.78 per annum

On the McCarthy & Stone FAQ page:

Quote

 

Our Entitlement Advice Service helps Customers to identify entitlements they perhaps didn’t know existed. Over the past two years, we have our customers claim more than £1 million in unclaimed benefits.

For example, it is possible that certain costs, such as ground rents and service charges could be covered by entitlements such as Pension Credit.

https://www.mccarthyandstone.co.uk/faq/

 

 

 

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That's quite something. The cost of a very decent car or motorbike every year! 

Didn't see a swimming pool / gym / bowling alley / concierge on the listing you linked to either.

Although they do have communal washing machines... :lol: 

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11 minutes ago, Democorruptcy said:

£139,950 two bed flat for sale in Llandudno, 125 year lease from 2002, ground rent £410 per annum, service charge £6,629.78 per annum

On the McCarthy & Stone FAQ page:

 

 

Ladies and Gents toilets lest you get caught short between entering the building and walking a few metres to your flat.

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Retirement flats - note the minimum age of 60. So I expect the management fee includes services relevant to the elderly living semi-independently, which won't be cheap. Also, there's a dining room/restaurant, which is the meals served there are included in the service charge, would go a long way to justifying it.

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7 minutes ago, homeowner595 said:

Retirement flats - note the minimum age of 60. So I expect the management fee includes services relevant to the elderly living semi-independently, which won't be cheap. Also, there's a dining room/restaurant, which is the meals served there are included in the service charge, would go a long way to justifying it.

I know it's a retirement flat that's why I linked to M&S's page about Pension Credit.

I assumed service charges would be higher in retirement homes because of the expense of a live-in manager. Though they often move out and their accommodation is sold.

Does anyone know anyone living somewhere like this and what they can and cannot claim for under service charges?

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A large part of this management charge will be the bloated management costs...everyone wants a piece of the action without doing any work or providing a useful service.  Mirrors the UK economy generally.

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1 hour ago, Democorruptcy said:

£139,950 two bed flat for sale in Llandudno, 125 year lease from 2002, ground rent £410 per annum, service charge £6,629.78 per annum

On the McCarthy & Stone FAQ page:

 

 

Is that Llandudno next to Monaco or Llandudno wales where all the poor people live ?

 

 

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22 minutes ago, TheCountOfNowhere said:

Is that Llandudno next to Monaco or Llandudno wales where all the poor people live ?

 

 

:lol:

I could more understand it, if it was a posh area darn sarth, I dread to think...

Edit to add

A new one in Surrey is £63.92 a week so about 50% less 

https://www.mccarthyandstone.co.uk/retirement-properties-for-sale/caesars-place-godalming/

Llandudno must have extras but I'd like to know what Pension Credit covers.

 

Edited by Democorruptcy

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56 minutes ago, Democorruptcy said:

:lol:

I could more understand it, if it was a posh area darn sarth, I dread to think...

Edit to add

A new one in Surrey is £63.92 a week so about 50% less 

https://www.mccarthyandstone.co.uk/retirement-properties-for-sale/caesars-place-godalming/

Llandudno must have extras but I'd like to know what Pension Credit covers.

 

godalming is not posh ;)  not many homes over 10 mill 

 

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13 minutes ago, longgone said:

godalming is not posh ;)  not many homes over 10 mill 

 

Is it godawful? I just googled Surrey, feel free to beat my record, if you can find a posh place. 

Edited by Democorruptcy

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I'm pretty certain Pension Tax Credit is just a set amount based on your income and savings, I sincerely hope that some form of extra Pension Tax Credit isn't available solely for the purpose of paying extortionate service charges!

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42 minutes ago, nome said:

I'm pretty certain Pension Tax Credit is just a set amount based on your income and savings, I sincerely hope that some form of extra Pension Tax Credit isn't available solely for the purpose of paying extortionate service charges!

I think you have a guaranteed minimum amount but some housing costs are paid in addition, to ensure you have that guaranteed amount left.

Page 17 of this AgeUK doc from 2014 

Quote

 

The amount of eligible service charges will be converted into a
weekly amount and added to your appropriate minimum guarantee.


Example: Phyllis has to pay a total of £590 a year in service charges. A
breakdown of the charges shows that the whole of this is for eligible services
apart from £70 for an alarm system. £70 is deducted and the remaining £520
is divided by 52, giving a weekly amount of £10 for service charges, which is
added to Phyllis’s appropriate minimum guarantee.

https://www.ageuk.org.uk/brandpartnerglobal/gloucestershirevpp/factsheets/pension_credit_fcs.pdf

 

 

 

Edited by Democorruptcy

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This is no more than key money for retirement homes, in the same way Shared Ownership (or any other prop - take your pick) is key money for First Time Buyer homes. 

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I live in a small council block and the service charge was until a year or so ago only 45p per week. I was gutted as recently it has been increased to about 70p per week! :)

For that, the stairwell and bin area is cleaned every two weeks. Plus living on an estate, we also have access to a warden should any issues arise. 

I don't know how much of this is subsidised, rather than from the rent but it's pretty good value considering the rent is about £225 below market rent too but then, given how old the block is, the flat has effectively been paid for many times over.

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16 hours ago, TheCountOfNowhere said:

Is that Llandudno next to Monaco or Llandudno wales where all the poor people live ?

 

 

I've said it before, when you compare local wages and local job opportunities to local house prices North Wales and Anglesey is just as unaffordable as anywhere in the London commuter belt and the Home Counties.

Edited by nome

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They are going to have to fix all these greedy lease companies, taking everyone’s money off them is no way to encourage economic growth.. it’s just robbery.. 

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18 hours ago, Democorruptcy said:

I think you have a guaranteed minimum amount but some housing costs are paid in addition, to ensure you have that guaranteed amount left.

Page 17 of this AgeUK doc from 2014 

 

 

Looks like you are getting to the bottom of it. Is there a limit on the service charge (that the taxpayer will pay)? ( £6600 maybe)

Edited by opt_out

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