Surely I am not the only landlord worried about new EPC requirements?9:44 AM, 17th February 2021
About A week ago 125
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.
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