Urmston retirement flats residents 'crippled' by service fees rise

Veronica Williams says there has been a "ridiculous" increase in service charge

People living in a retirement complex have said an increase in annual service charges to almost £11,000 is "crippling".

Residents who bought flats at Oakfield Court, a McCarthy Stone property in Urmston, Trafford, compared the costs to having a mortgage.

Veronica Williams said a 15.9% rise in a year was "punitive" and "ridiculous".

McCarthy Stone said service charge costs had risen due to inflation and they "do not make a profit".

Oakfield Court's flats are leasehold, which means there is a contract that allows the owner to live there for a fixed term.

The service charges for Oakfield Court cover specialist care and support if needed, along with staffing, gardening, a restaurant and energy costs in communal areas.

Ms Williams lives at the complex with her husband Terence, who has Parkinson's Disease.

She told BBC North West Tonight "everything was hunky-dory" when they moved in seven years ago, but recent cost rises were "ridiculous".

Pat Burrows, who also lives at the same Oakfield Court property, said the owners of the retirement complex "don't seem to care", adding: "That's the big thing - it's just money, money, money.

"I am just keeping my head above water."

'Fair and transparent'

She said she was also concerned her children would have to "pay the service charge even when we're dead, until they can sell the flat".

Fourteen of the complex's 51 flats are on the market, with some taking a while to sell.

The longer they are up for sale, the more family members will have to pay in service charges and ground rent.

"They're getting their money when we're alive and they're getting the money when we're dead," Ms Burrows said.

Lee Wolstenholme, whose father lived at Oakfield Court until his death two years ago, said: "The staff are fab and my dad loved his time there but the 25% increase in service charge over the last two years is way too much."

Lee Wolstenholme's dad lived at Oakfield Court until his death two years ago but he is still paying the charges

He said since his father's death he has been left with the bills, paying about £10,000 annually for service charges, ground rent, council tax and various utility charges.

"The 100% charge on empty flats needs to be reviewed now that apartments are taking longer to sell, perhaps with a reduction for the services that aren't actually being used," he said.

In response, McCarthy Stone said: "Any surplus money not spent at the end of the year is returned to homeowners".

"All costs are passed through with no commission or mark up, and we do not make a profit from them."

Labour MP for Stretford and Urmston Andrew Western has got involved to try and help the residents and described their financial position as "troubling".

"McCarthy Stone needs to provide information and clarification to justify those increases," he said.

"It leaves people who have worked and saved all their lives - on fixed incomes - seeing their outgoings increase significantly."

McCarthy Stone says the service charges increases are clearly communicated to Oakfield Court residents

At the opening of Parliament in November, the King announced government plans to strengthen the law around leasehold properties and to tackle "the exploitation of millions of homeowners through punitive service charges".

A spokeswoman from the Department for Levelling Up, Housing and Communities said: "Charges like these are completely unacceptable without proper justification.

"That is why we are committed to strengthening protection for leaseholders, and are bringing forward reforms through the Leasehold and Freehold Reform Bill.

"These changes will arm them with more information on what their costs cover and empower them to hold their landlord to account and challenge unreasonable costs."

A statement from McCarthy Stone added: "When a property is to be resold, we offer tailored financial support and guidance for those requiring assistance.

"Our service charges pay for the services that help our homeowners live a better later life.

"The charges are fair, transparent and clearly communicated."

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