Father-in-law may lose house he's been in all his life, please help urgently!

audioblackout

Hi everyone,

My father-in-law (who is 67 - over the retirement age but still wanted to keep working) was recently given 6 months notice on his job and was moved to another factory for the remainder of his time at the company. However, once he realized how bad the working conditions were at the new factory, he quit the very same week.

Unfortunately he still has a mortgage. Obviously with him being over 65, it's very difficult for him to find a job quickly. It's two weeks on and now he is in the serious position of not being to able to pay his mortgage. He has a meeting with the bank tomorrow and we're all fearing that he will lose the house he has lived in all his life.

It's an awful situation but we were wondering if there's a way out of this that will enable him to keep his home? Someone mentioned one of these companies that buy your house and rent it back to you. Will this give him the few months restbite he needs to find some other work?

And what are the good ones, cause I've heard some dreadful horror stories about this.

I really don't know how it works when you're over retirement age but can he go on some type of housing benefit and pay this company the rent whilst he figures out how he'll get his money in?

As a few extras to the story, his wife is disabled but she cashed in her disability benefit so there's no possibility of money from that angle. Perhaps he could become a carer and get paid some type of benefit for looking after her?

Honestly, I don't know where to start. And with him being over retirement age I'm thinking slightly different rules might apply here that may or may not work in his favour.

Any help anyone can give me at all on this would be massively appreciated. The poor guy has just got over prostate cancer too. It would mean everything to him to keep his house, whatever way he can.

Thanks in advance.

Mark

uzubairu

How much does he owe?

Did he have no other option but to quit. It does seem like he hasn't thought his decision through properly?

I hope there is a solution.

Cannon_Fodder

Quitting was the problem...if he could have stuck it out until redundancy/retirement...moving on.

Needs to consult any union reps/legal routes available - CAB?. There are rules about the alternative employment offered being appropriate/equivalent etc. Maybe he can claim constructive dismissal, somehow. Though, really it should be done without just quitting, I believe, to give the employer a chance to modify the arrangements. Can't hurt to ask, though, as it could be the difference between having a house or not.

As he's been there so long, is there much equity in the house? Could downsizing be desirable anyway, if the wife is disabled ?

No savings to buy a breathing space? Keeping the mortgage paid and selling it himself will probably give him less debt - may even have equity - than if they repossess.

Find some newspaper clippings with Gordon Browns promise to help the unfortunate at this time, and take them to the Bank. Which bank? Owned by the taxpayer, by any chance? They could allow him six months arrears, which time could be useful to re-arrange matters.

Sell and rent back schemes are a minefield. Only consider if absolutely desperate. Contact Help the Aged, for advice.

Cannon_Fodder

http://www.dailymail.co.uk/news/article-479444/Struggling-homeowners-warned-beware-rent-deals.html

http://www.thisismoney.co.uk/help-and-advice/advice-banks/article.html?in_advicepage_id=119&in_article_id=422683&in_page_id=90

jawster

Surely him and his wife would qualify for the pension credit?

http://www.thepensionservice.gov.uk/pensioncredit/age65.asp

silvercar

Check he is getting all the benefits he is entitled to. After 2 months out of work, I thought the government would pay his interest?

Could he convert to the sort of mortgage where he pays no interest, but the debt is rolled up and paid out of the sale of the property after their death?

Leon_W

As silvercar mentions, it would be worth exploring your equity release options.

Lots of information on Norwich Unions website here. Not that you would neccessarily go to NU, it's just that the information is fairly easy to understand. Take Independent advice.

http://www.norwichunion.com/equity-release/

I would avoid the "sale and rentback" crowd like the plague. Your FIL will not have a secure tenancy and could be out on his ear within 6 months whether he kept to his side of the bargain or not.

Regards

drrobert

Leon_W wrote: »

As silvercar mentions, it would be worth exploring your equity release options.

Has he already withdrawn and spent equity from his house? I presume he must have, if he's lived there all his life, and still has an outstanding mortgage balance at the age of 67.

EdInvestor

For equity release always deal with the providers mentioned here:

https://www.ship-ltd.org.uk

Visit the CAB or Age Concern to check out the benefits he and his wife would be entitled to.

audioblackout

Well, first of all can I just say thanks so much for all your help. Although I haven't replied until now, I've been reading the replies all afternoon and researching everything you've recommended. What incredible information you've given me. Thank you so much.

Anyway, he phoned up the Pension Credit number and YES! he can get it.
I also found this link: http://www.entitledto.com/default.aspx, that tells you what benefits you're entitled to. I've sent him it and he promises me he will fill it all in tonight.

Unbelievably, he hadn't arranged a meeting with the mortgage people (C+G), so I told him that was priority. Perhaps he could get the length of the mortgage increased. Change to interest only. Or ask for the six months arrears as you suggested. Either way, nothing gonna get fixed by not saying anything, defaulting and hoping it would all go away.

Anyway I found out alot more to the story too.

Yes, he had remortgaged recently for home improvements. He tells me has 35000 outstanding @ £498 per month. I reckon the house is worth about 100000. He also has a loan secured against the house with Llyods TSB for £15000 @ £250 per month. He actually has a meeting with TSB tomorrow about his loan but I told him not to agree to anything under pressure!

He tells me his pension is £728 per month. He also tells me his wife is getting £400 per month through her disability. In my calculations he can just afford it (a squeeze) until he sorts out what he's going to do, but you never know what he's not telling me. It was a real battle to get these figures out of him, as he's such a proud man.

Anyway, I told him to consider renting out a room to a lodger. Perhaps he could get a friend to move in and pay housing benefit/rent or something. Told him also to consider moving out to a bedsit and renting. Or selling up and downsizing.

Said Equity Release as a last option, as none the kids mind too much about inheritance as long and he spends the end of his life without worry. And oh yeah, avoid sell and rent at ALL costs!

If anyone else has any other suggestions, they'd be most welcome. Oh and I wonder if you guys would know whether it might be possible to change the loan to somewhere else with a better rate or that would be unsecured? Would it work like a credit card where you can balance transfer to a better deal? I suppose with him retired/out of a job that might be difficult now?

Many, many thanks.

dimbo61

Put the house on the market and look round the area he lives in to see if any over 55,s social housing.
My dad sold his home a few years ago and moved into a flat with other pensioners and he is very happy.
It has given him the money to travel while young enough and he has made many new friends in this community.
He is now chairman of the residents committee and helps look after the gardens.
A house is just a pile of bricks and they may find a ground floor flat with walk in shower ETC much better in there old age ! GOOD LUCK