Should my 78 year old mum buy a flat?

p0d

My step-dad died last month and has left his house to his family, so my 78 year old mum has to find somewhere to live.

Basically she has a pot of £150k, and weekly income of £150 per week from pensions. I would appreciate any advice on what her housing options are. My concern is that if she buys a flat for £140k she is not going to have enough money to live comfortably, and the flat value will depreciate. There are a lot of flats in the town that she lives, that have been for sale for years, and have not sold even though the prices have dropped.

Would she be better off putting the £150k into savings accounts, renting and using the interest (3% AER) to supplement her living costs?

What are her best options? Any advice much appreciated.

Radiantsoul

Sorry for your loss.

This is an emotional as much as a financial question. It is pretty hard to make a decision so soon after a death.

Running_Horse

I would certainly advise her to take her time.

A flat will be easier to buy then sell, if it is the wrong decision.

poppysarah

That sounds very hard on your mum at this terrible time.
Was that your step dad's intention to make her homeless? Was it not her house too?
What deadlines have been mentioned for leaving the current house?

She should watch out for flat service charges as these might well end up being unaffordable on a limited income.
If she rents then her capital will erode but might give her more time to decide where she really wants to live. BUT moving is stressful at any age but in a vulnerable state she might find it more stressful than she thinks.

Slinky

I'm sorry for your loss.

A consideration about renting is that she could be asked to move on at any point (subject to proper notice of course) in the future. At 78 or older would she want to be at the whims of a landlord?

When I get to her age I hope I won't be concerned about 'depreciation' only that I want a comfortable home I can afford to live in. Depreciation is only a problem if she wants to move again.

tbs624

Your step father could of course have made a proviso that she remained in occupation of the property until her own death, with the property then passing on to his family.

IMO your Mum would be better with the security of owning her own place- its not nice for people in their older years to be subject to the possibility of having to move on or pay regular rent increases.

Surely if your mum bought a property outright even at the full 150k , she could manage to live on that £150 per week? If, as you say, many of the flats locally have been up for sale for some time perhaps you/she could negotiate hard and buy something at a lower cost so she still has some of the capital left?

Have you/she looked at the AgeUK website - lots of helpful advice there.

krlyr

Could she afford something other than a flat in your area?

katejo

tbs624 wrote: »

Your step father could of course have made a proviso that she remained in occupation of the property until her own death, with the property then passing on to his family.

IMO your Mum would be better with the security of owning her own place- its not nice for people in their older years to be subject to the possibility of having to move on or pay regular rent increases.

Surely if your mum bought a property outright even at the full 150k , she could manage to live on that £150 per week? If, as you say, many of the flats locally have been up for sale for some time perhaps you/she could negotiate hard and buy something at a lower cost so she still has some of the capital left?

Have you/she looked at the AgeUK website - lots of helpful advice there.

I agree with the above. Have you checked that such a proviso does not exist? If it doesn't, could she continue to live there but pay rent to members of his family who inherit the house? It seems pretty mean to just evict her.

ader42

Personally I would never advise anyone to buy a flat. Ever. In most areas of the country 150k would buy a small bungalow (freehold).

Mind you, I think it's cheaper to rent at the moment given that house prices are falling.

It kind of depends on what rental options are available in your area.

If it was me I'd be considering building a self-contained annex on my house for her.

p0d

I don't know what my step dads intentions were, he never said and I didn't really know him. I live 200 miles away from my mum.

She supposedly has a year, but says she wants to move in a few months.

I think keeping her capital and using the interest to contribute towards the cost of renting a sheltered housing flat for example is the best thing for her to do, but I am no expert.

I just want her to be able to live comfortably.

Edit - I'd love her to come and live with my family but she won't leave the town she lives in. There is no proviso and his children want it sold as soon as possible so they can split the money.

McKneff

Personally, I would have a look at the will and check everything.

Did the house wholly belong to him. Seems a bit unfair on your mum. Knowing him, would he really have done this to her, he loved
her enough to marry her.

Did he make his will before or after he married your mum, makes a big difference.
If before and he didnt change it, marriage voids a will written before hand