Retirement house builder McCarthy & Stone has confirmed that it will extend the lease on all new properties to 999 years.
All apartments listed for sale since August last year will now come with the virtual freehold. Previously 125 years, the extension ensures that the property will be valued the same as an equivalent freehold property.
McCarthy & Stone says the move will give homeowners and their families’ complete peace of mind when they come to sell on in the future.
Clive Fenton, CEO at McCarthy & Stone, said: “At McCarthy & Stone we are committed to helping older people stay independent for longer. Our developments give homeowners the opportunity to benefit from the best of both worlds – companionship when they want it and privacy when they need it, and we are confident that this significant change to our lease will also provide our homeowners with the security and reassurance that a McCarthy and Stone property is secure financial investment for the future.”
Under historic common law, a 999 year lease is essentially a permanent lease of property, as the chances of a home still being there when the lease expires are extremely slim.
As the longest possible term of a lease, they are particularly favoured by lawyers, estate agents and buyers.
The lease extension comes as the group says it is on track to build 3,000 homes a year for the over 60s market. As reported by Care Home Professional yesterday, the firm has acquired enough land to deliver targeted sales up until at least 2019.
McCarthy & Stone currently has more than 160 developments under construction or for sale nationwide.