Can't pay off mortgage, don't want to move.

baggieaggie

Unable to cope any more with privately renting and the constant moving involved in that, we 'bought' a property using the only means we could afford - an interest-only mortgage. That was almost 5 years ago, and the mortgage period ends in 2017, when we both reach age 65. Unless we win the lotto, or a rich relative we're unaware of dies and leaves us a fortune , we'll have no way of paying off this mortgage. The plan was to sell when the time came (and hopefully make a profit) but we'd much prefer to live out our days here if there's some way to do it. Are there any options open to us? (The property, a 3-bed ex-Council terrace, is leasehold, by the way.)

Raggs_2

In effect you've been renting this property anyway. My guess (and that's all it is) is that your best bet is to see if you can extend the mortgage up until the age of 70, and get to paying off the mortgage as quick as possible.

baggieaggie

Raggs wrote: »

In effect you've been renting this property anyway.

Absolutely, but at least we're not having to move every five minutes when a landlord wants to sell or move back in, which was what was happening before. Not good when you have health issues.
Also, no matter how long the mortgage term is, we'll never be able to pay it off, sadly. If we do have to leave, then selling sooner rather than later, before health deteriorates even further, is preferable.

ALIBOBSY

Can you start paying off some of the capital ASAP. Even a small amount each month means less owed at the end (worth ringing up to check the terms and conditions regarding overpayments on the account).
As raggs says try to extend if you can to give you more time, how fit are you you may want to consider continuing some kind of work evn after claiming your pension and throwing all the cash you can at the mortgage.

At worst by bringing the outstanding down at least you end up with a bigger profit if you end up having to sell anyway. Plus in 7 years who knows what will happen or how much house prices may have changed? You either need to resign yourself to moving or extend and work hard to clear the mortgage.

Whatever you decide good luck

ali x

Raggs_2

baggieaggie wrote: »

Absolutely, but at least we're not having to move every five minutes when a landlord wants to sell or move back in, which was what was happening before. Not good when you have health issues.
Also, no matter how long the mortgage term is, we'll never be able to pay it off, sadly. If we do have to leave, then selling sooner rather than later, before health deteriorates even further, is preferable.

I believe you've answered your own question (unless someone knows of any loopholes etc).

You cannot pay for the house, nor is there any way to do so. If you want to sell sooner rather than later (make sure the sale covers your mortgage though (and moving costs), then you may need to get to it.

baggieaggie

This sounds horribly depressing. Are there no specialist companies who buy properties and allow the original owners to stay in them as rent-paying tenants for the rest of their natural lives? If not, there's a niche in the market. If I was well, I'd set one up myself, lol!

beecher2

baggieaggie wrote: »

This sounds horribly depressing. Are there no specialist companies who buy properties and allow the original owners to stay in them as rent-paying tenants for the rest of their natural lives? If not, there's a niche in the market. If I was well, I'd set one up myself, lol!

There's Equity Release but that's only possible if you have equity, and it sounds like you've none.

Euphoria1z

doesnt the government help in anyway to pay towards the interest of your mortgage if your unable to work due to health reasons?

beecher2

Euphoria1z wrote: »

doesnt the government help in anyway to pay towards the interest of your mortgage if your unable to work due to health reasons?

I don't know if they do post retirement, and the issue is that the lender will expect the capital to be paid at the end of the term.

Euphoria1z

in that case, is there a certain age where you cant remortgage ( or get a mortgage)? i.e cant a 70 yr old get a 10-15-25 yr mortgage?

beecher2

Euphoria1z wrote: »

in that case, is there a certain age where you cant remortgage ( or get a mortgage)? i.e cant a 70 yr old get a 10-15-25 yr mortgage?

I think lenders have different age restrictions, but if the household income after retirement is adequate then they might allow further remortgages. The OP should probably get some financial advise or post details figures.