Need advice

uniset

My nieghbors husband recently passed away and his wife wants to stay in the house, there is no mortgage on the 4 bedroomed detached house and is valued at over £200,000.
Unfortunately she will not recieve enough money to pay all the bills, and does not feel happy with renting out rooms.
At her age 41, there are not many options, if anyone has any ideas how she could stay there, I would be very gratefull.
It is a difficult time for her, and wish we could find a solution, without her moving. Thankyou for your help.

Thrugelmir

From what you've written. Perhaps get a job to provide the income to pay the bills.

uniset

Unfortunately she is in bad health, and unable to work.
Thanks very much for the reply

Thrugelmir

uniset wrote: »

Unfortunately she is in bad health, and unable to work.
Thanks very much for the reply

In those circumstances the options are limited. Staying in the property while understandable for sentimental reasons makes no financial sense at all.

uniset

Thats is what we thought really, is buy and rent back a bad move?

shortchanged_2

Surely she would get enough income to be able to live in that house by herself if there is no mortgage on it. She must be on quite substantial disability benefits if she is unable to work, plus is she entitled to any of her husbands pension?

Things like council tax will be reduced as a single occupier. If she is savvy she can keep her fuel bills down by not heating rooms too much that she doesn't use. Food costs should be quite low.

By the way how much money does she get? I spend about £400 on household bills plus sky etc (and there are 5 of us in our property) not including the mortgage, food and petrol.

Thrugelmir

shortchanged wrote: »

Things like council tax will be reduced as a single occupier.

That's only a 25% discount. So still a hefty bill for the privilege of living in a property far too big for single occupancy.

Conrad

uniset wrote: »

Thats is what we thought really, is buy and rent back a bad move?

Terrible. The last thing she would ever want to do.

For a start if the company go bust (they will all say they are sound - but thats what N Rock and Lehman Brothers said), the asset would go to the creditors and she would be turfed out. Guarantees are not to be relied upon as like any insurance there will be many loopholes.

Also it would be common for the asset to be then passed onto a third party investor - perhaps some unknown Russian company for example when the current company want to cash-out.

Also why on Earth would she want to give her away her financial security.

She reminds me of people that say to me they want a house when I tell them thier budget is for a flat. She needs to wake up and make good decisions based upon reality and not 'ideals'.