The family of a deceased care home resident have lodged a formal complaint with the Property Ombudsman, alleging that a property development company has saddled them with crippling debt. They claim the firm aggressively marketed "utopian" retirement flats to their elderly aunt, leaving them with a financial nightmare after her death.
The Case of Jean Martin
Jean Martin, a former Warwick District Council employee, purchased a one-bedroom retirement flat at Wilton Court in Kenilworth, Warwickshire, in January 2015. She sold her previous home on Southbank Road and moved into the McCarthy Stone development the same day. Described by relatives as "very frugal," Jean never married or had children and intended to leave her estate to her nieces and nephews.
In November 2018, Jean moved to the nearby Kenilworth Manor care home, where she passed away three years later at the age of 91. Her flat was placed on the market in February 2019, but it remains unsold seven years later, sitting empty while her family inherits what they call a "prolonged financial struggle."
Mounting Fees and Price Cuts
Jean's niece, Sheila Pitman from Bottesford, Leicestershire, who serves as the estate's executor, revealed the family faces approximately £43,000 in accumulated service charges. The flat was initially listed for £285,000 but has since been reduced to £175,000, with the family alleging that McCarthy Stone owns a 30% share. They are currently in the process of exchanging contracts for the fourth time, hoping to finalise a sale at £160,000 in April.
Sheila Pitman described the experience as "horrendous," stating, "Her aim was to leave it all to us so we had some money when she died, and of course, we are not getting it."
Allegations of Unethical Practices
The family accuses McCarthy Stone of deliberately keeping the flat vacant to accumulate annual service fees, which they deem "unethical" since Jean no longer resides there and does not use the facilities. These charges cover everyday operational costs, a contingency fund for maintenance, and a management fee, including a 24-hour on-site manager service and emergency call system.
Jean's nephew, Paul Martin from South Wales, remarked, "There seems to be a lot of jiggery-pokery going on. If you buy one of these flats, it is very hard for your relatives who you pass it on to give any recompense."
Broader Industry Issues
This case highlights a wider problem where relatives are burdened with selling age-restricted retirement homes in a saturated market. Experts note that over 100,000 properties in privately owned retirement blocks are vacant across England and Wales, with potential buyers often deterred by restrictive contracts and post-pandemic fears of communal living.
Nick Ash, managing director of W&P Legal, who is assisting the family, called the process a "total nightmare." He told the Daily Mail, "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." Ash added that his firm has supported three or four families in similar situations.
Company Response
A spokesperson for McCarthy Stone stated that the apartment is now sold subject to contract and emphasised their commitment to supporting vendors. They defended the service charges, explaining, "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. Service charges are governed by legislation and cover the current and future costs of running our developments."
The company asserted that they do not add any mark-up to these costs and that vacant properties provide no additional financial benefit to McCarthy Stone.
Family's Perspective
Relatives believe Jean was "wooed" by McCarthy Stone's marketing, which portrayed Wilton Court as an "elegant retirement living" community with gardens and an in-house restaurant. Paul Martin recalled, "She was very excited about it because she thought it was going to be utopia." However, they contend that had she remained in her old flat, she would have been "perfectly okay."
After unsuccessful attempts to resolve the issue through McCarthy Stone's complaints service, the estate escalated the matter to the Property Ombudsman, seeking redress for what they view as an unjust financial burden imposed on grieving families.
