Desperate to move out of social housing.

exitroute?

I may be in cloud cuckoo land and would really appreciate advice please. I am employed on a very low income, am over 55 and have 10k in savings. My son, who is likely to leave home in next 3 years or so knows I am very unhappy where we live and that I want to move before he leaves. He has offered to help finance this and has 10k available. I have seen several reposessions that I would have a 20k deposit for but would not get a sufficient mortgage for the rest. If my son applied for a mortgage or if we applied for a joint mortgage, could this be transferred to my name when he starts to look for his own home and will it affect his chances of getting a mortgage of his own at all? Would I be better going for a 25% shared ownership of a refurb in my own right? I have applied for the Homebuy scheme but am not keen on a newbuild, doubt I could afford to run one once my son leaves, most are 50% share anyway and I dont want to live amongst young familes. We have this 20k available to us and there must be a way it can help us get out of here to a home I can afford to run on my own eventually but I dont want to create any problems for my son. His 10k would repaid when I receive an occupational pension in a few years time although he will inherit whatever I own anyway. Thanx

zzzLazyDaisy

exitroute? wrote: »

If my son applied for a mortgage or if we applied for a joint mortgage, could this be transferred to my name when he starts to look for his own home and will it affect his chances of getting a mortgage of his own at all?

If you get a house with a joint mortgage with your son, the house will have to be in joint names.

The lender would not agree to release him from the mortgage unless you earned enough to satisfy the lenders criteria for a mortgage on the whole house, in which case you would get a mortgage to cover the whole loan, and effectively buy his share off him.

If your son has a mortgage on a property he owns with you, he will not be able to get a second mortgage for another house for himself to live in.

To be honest, if you can't afford to repay a mortgage, then is buying a house really such a good idea? You are coming up to retirement, are you going to be able to repay the loan by the time you retire? Also, if you can't afford your rent you will get housing benefit. If you can't afford your mortgage you will get repossessed.

Will your council/housing association agree to move you?

dunstonh

If my son applied for a mortgage or if we applied for a joint mortgage, could this be transferred to my name when he starts to look for his own home

Only if your income is capable of meeting lending criteria. From what you say it doesnt.

will it affect his chances of getting a mortgage of his own at all?

Yes. It will basically stop him from being able to do as your mortgage repayments will reduce his affordability as well as wiping out his own savings to help increase your deposit leaving him with none.

Would I be better going for a 25% shared ownership of a refurb in my own right?

Depends on what you get for that compared to what you have now.

To be honest, based on the very little you have said, I wouldn't be very confident.

geri1965_2

If you are not happy where you are, could you apply for a transfer or swap?

exitroute?

Thanks all. The money my son has offered was given to him fairly recently when a close relative died and is not part of his own savings as such. He is more concerned about my future and wants to help. We have tried every avenue to move via exchange/Choice Based Lettings schemes to no avail.,,even took it to my MP who couldnt help. There are reasons why we want to move best not entered into here. I work on a 24 hour contract with unpredictable overtime..min 6 hours max 24 hours per month.. and took home just over 8k last year. Can you advise me if I would be able to get a mortgage at 57 years of age and what are repayments likely to be? I will be working for another 5 years minimum and can stay in my present employment beyond that for another 5 years. I am not entitled to any benefits while my son is living with me and dont have a credit card or any debts. x

zzzLazyDaisy

Sorry but I have to say that on £8k a year the chances of you getting a mortgage are virtually nil.

Most lenders will lend about 3x income. So you'll get a mortgage of around £24,000. BUT that is over 25 years and you only have ten years working life left, so the total amount you'd be allowed to borrow is even less than that, if you could find anyone to give you a mortgage.

You do understand that you have to find the money to repay the loan as well as the interest before you retire, don't you?

elliebobs

As demonstrated above, I'm sorry to say that your chances of getting a mortgage are remote at best.

You don't say whereabouts in the UK that you live but is there any chance that you could move into privately rented accomodation. If your son is likely to be moving out then you could perhaps look into downsizing so your rent wouldn't be too high.

The benefits would be that you could choose where you lived and you would probably still get some sort of help with the rent.

Obviously, there is the risk that it is nowhere near as secure as social housing but...I personally feel that the luxury of choosing your neighbourhood is worth the risk.

Lastly, you mention that you are not entitled to any benefits...have you tried applying for Working Tax Credits???? If you are working for an average of a minimum of 30 hours a week (unless you are disabled) then, on your income, you would qualify.

HTH

Ellie

exitroute?

Thanx. I suppose its out of the question for me to consider getting a loan instead of a mortgage then or a small mortgage I can repay in time topped up with a loan? For the forseeable future, my son will live with me and we would need 2 bed accommodation and have 2 cats as well. I live in Stafforshire county town and did look into private rental but all was too expensive. I applied for the previous part buy/part rent Govt schemes and was accepted which makes me wonder why when they had all my details and must have known i couldnt afford it. I have applied for the latest Homebuy scheme this week and from all you say, I wont be accepted. The last time I applied for Housing benefit , my sons income was taken into consideration and I was not entitled to anything, although that was quite some time ago. I had no idea that I might be entitled to working tax credit. Thank you very much indeed for that and I will get an application form.

dexter_fan

If you are looking for alternative accomodation, as you are over 55 you would qualify for retirement housing in the social sector. Your son would not be able to move in with you though. There are some really nice complexes around the country, with flats and bungalows.

If you have, say a 2 bed property now, and you went into a 1 bed property, many councils also run a Sponsored Move scheme. Ours pays £1,000 per bedroom you loose. So you could end up with a nice flat and some extra money :j

London Councils are also part of a Seaside and Country Homes schemes for over 55':js. Basically, they are linked into retirement properties out of London. This is again to free up accommodation in busy London by encouraging older people who are under occupying to move out.

Guess what I do for a job:j????

exitroute?

Yes, my son getting his own place is an option and we have discussed it briefly but he is not at home very much and financing a flat for himself seems pointless. His girlfriend is about to go to uni so he will be here even less ,visiting/staying with her. If they stick together, I feel sure he will plan to leave home when she is employed and they can share a home. That will be 3 years time and I want to move asap. There are no incentive schemes for downsizing in my town and the social housing situation would be a great deal better if that was the case. I am in a larger 2 bed house, built to accommodate 4, which is spacious and quite expensive to run and decorate etc.I am viewed as adequately housed and despite applying to every RSL within a 20 mile radius for a smaller 2 bed property, denying no one a home as mine would be released to a family..no one wants to know. I was offered a one bed flat and am not sure where my son was supposed to go. Many over 55's places have 2 bedrooms. i didnt know my son would not be able to move with me. Who is the second bedroom for? After years in a mid-terraced house between a succession of young families on both sides, the most important issue for me in my next home will be excellent soundproofing.

pingua

How about just renting ?