Renting permanently- never buying!

Tainted_love

I own a 50% share in a shared ownership property so therefore pay rent on the remaining half. If I stay in this arrangement and don't buy any more shares then I will have to pay rent even when my mortgage ends at age 60. This worries me as it will have to come out of my pension presumably. I wondered about those who choose not to or are unable to buy property, how is the rent going to be paid in retirement?

mkaibear

Tainted_love wrote: »

I own a 50% share in a shared ownership property so therefore pay rent on the remaining half. If I stay in this arrangement and don't buy any more shares then I will have to pay rent even when my mortgage ends at age 60. This worries me as it will have to come out of my pension presumably. I wondered about those who choose not to or are unable to buy property, how is the rent going to be paid in retirement?

The rent will be paid out of your pension or other retirement savings / investments.

blckbrd

You may be entitled to housing benefit on the rental portion.

BMW_Mike

This is an issue which concerns me as well - Hopefully my mortgage on the Shared Ownership house will be paid back by the time I retire, - The rental portion goes up by CPI plus 1% annually, I have around 16 years to go, - By that time the rent will be a significant amount. It isnt massive now.

In maybe 5 years we plan to staircase to bring the rent down and increase the portion we own, currently 50 / 50 - at age 66 or thereabouts we plan to sell to release the capital in our share - along with some other legacies etc that should come along and buy a small retirement flat somewhere - Hopefully being mortage free - whether something like this could work for you?.

Someone once told me that the only way to suceed is plan, you can never overplan however only 60% of plans actually come to fruition.

Otherwise it's rental - and the possibility of benefits if your income and savings are low - and this area is being hit hard,