Retirement income advice.

atush

I can't see anyway aroudn this. You need to mortgage one in some way, or downsize. Other wise live on what you have........

Can your father not manage to pay anything at all frm his pension? the way you are set up is really hampering not only your cash flow but probably his access to benefitssuch as housing and council tax etc?

You should possibly see the CAB to make sure that he is claiming all he should, and that perhaps there should be some sort of rent paid if only to make his spending as it should be?

I think you may, if you want access to more than your 12K per year (and BTW how will you maintain 2 places for that amt) you will have to get some sort of mtg.

nellienellie

Hi Atush, Yes, we really do know that we have done this all very wrong. My Dad does pay for any maintainance of the house, and I am aware he could get benefits if we began charging rent, but I don't know if I really want to go down that road, and put him under the stress of all that. He does not like change at all now, and finds it difficult to understand why there needs to be changes. I really feel that our only option will be to remortgage our home and at some time pay it off with the sale of one of the houses.

atush

Early 80's isn't all that old these days (unless he has health probs) so he probably does hate change but as the man of the household knows how to budget, run his finances etc. I think you should at least be truthful abt your own circumstances and finances as he could be under the impression you 2 are still rolling in it? Maybe he would agree to downsizing his house to a flat as he os now just one person if he knew your true situation? He doens't need a 2/3 bed is he is just one now. But I know why you did it, as you were feeling flush back then and really wanted to make your parent's life better which you did.

Anyway Good luck whatever you choose. and I hope you won't mind me pointing out this is a classic case of too many of your eggs on one (property and not even income generating property) basket as you only have a tiny pension when you could have had a larger one or maybe cash and S&S ISAs too.

Your type of case is why we say to diversify/have options as no one really knows how things will be when they retire if you are planning so far in advance/

BLB53

Your expenditure is likely to be a lot less after you both retire. Best thing imo, is to wait for 12 months after you actually retire and just see how everything works out. If after a year you are still finding things a bit tight, THEN you can address what to do.
I am sure you will both be OK and things will work out - they usually do!

maggieann155

i think that s a very good piece of advice, to review the situation after 12 months.

also then you ll have the time to (calmly) research all the options fully.

good luck, and have a long, happy,and healthy retirement.

and annie, its good to know that you can have a decent leisure time, even with a very modest pension, cus you' re a money saving expert !

sleepless_saver

nellienellie wrote: »

Hi Atush, My Dad does pay for any maintainance of the house, and I am aware he could get benefits if we began charging rent, but I don't know if I really want to go down that road, and put him under the stress of all that. .

I'm not sure that he could get housing benefit if you started charging rent now. If you'd done it from the start with a proper tenancy agreement (and I fully understand why you didn't so this isn't a criticism) then it would have been OK. But now, I wouldn't rely on it. The acid test would be whether you would be prepared to evict him if he failed to pay the rent - I am sure you wouldn't.

But in any case, he may be entitled to get pension credit which is pretty simple and stress free to apply for. Well worth doing.

For your own situation, BLB53's advice is excellent.

getmore4less

What are both places worth?

Do you have any children?
(or who will inherit from you?)

Does dad have any assets

The issue with mortgages/debt route is that you will most likely need some form of equity release and these are expensive in the long run eating into the assets as interest accumulates.

getmore4less

jamesd wrote: »

One thing to know about the house your father is living in is that if it was given to you to avoid inheritance tax the fact that he's not paying rent will mean that inheritance tax is payable unless he lives for at least seven years after the gift. I'm assuming that at one point it was owned by him, may not be the case.

Allthough not the case here the above is incorrect.

If the house had been gifted and still lived in the value of the house would still form part the estate for IHT assesments even after 7 years.