10:16 AM, 2nd May 2014, About 8 years ago 5
Someone in my village I know vaguely came to see me as he knows I am a landlord. He is 63 and has a mortgage on his house that runs to age 65 and is interest only. He has no means of repaying it having lost his job a while ago to redundancy and has taken a lower paid job at about £22,000.
I’ve looked the house up – he bought it in 2003 for £180,000 and owes about £145,000 on it. It is in his name only. He thought it would be worth about £250k but knows if he sells that although he will have £70k he thinks he probably won’t be able to buy anything else (he wants to stay in the village). I suspect he pays about £600 per month.
The property is a bungalow with quite a bit of land around it, I haven’t seen it apart from at a distance.
As I see it some ideas might be –
1) Get a lifetime mortgage. Are these still available? Ive just been reading about this and it looks almost impossible on affordability.
2) Sell and use the cash to rent somewhere assuming it will last long enough
3) Sell and invest the money in something that will produce income to pay rent (eg lend it to me to buy property with a 10% rate of return)
4) Sell to me at below full market value and stay there for life at an agreed rent – that way he gets a lump sum too. This would be my preferred option as he gets to stay in his home but can I afford to accept less than interest rate if I do a 70/30 mortgage but might that go wrong later on.
Any other ideas welcome.
He has a daughter who says she doesn’t want anything from the house.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|