Parents want to move into flat, from detached house, why??

[Deleted User]

I recently did the opposite, moved from a luxury flat to a nice detached house with a garden. If they have no investment in their garden and are moving into a well managed and maintained building that has good neighbours I can't see any reason not to. I'm enjoying living in a large detached house with a garden, though I would have no qualms about moving back into a flat (except for the lack of a garden).

Regarding renting vs. mortgage, the amount they have remaining on the mortgage means they must be quite young, early 50s? If so, is moving into a rented flat their long term plan or is it a short term solution to their debt / mortgage problems and are looking to purchase again in a few years?

There are many considerations, the information you've posted is not enough to make an informed decision.

Fraise

berbastrike wrote: »

Their situation is currently, own house £200k, £150k left on mortgage, combined gross income £40k plus £15k pension (for rest of their lives)

they want to sell house, and rent flat for £1k per month. I'm telling them not to be so stupid as when you rent, you will never see the money again!

What will happen when they retire and only have a pension of £15k a year and £12k of that goes on rent? That's not forgetting rents rise over time. They will be in a terrible situation.

System

Fraise wrote: »

What will happen when they retire and only have a pension of £15k a year and £12k of that goes on rent? That's not forgetting rents rise over time. They will be in a terrible situation.

they will have state pension too, but good way of thinking about it

bristol_pilot

I've known a number of older people move from a house to a flat - usually because they felt they couldn't 'cope' (in some non-specific way) with a large property - and they have all regretted the move, principally for two reasons: not realising how much they would miss having a garden and problems with proximity of neighbours i.e. noise.

I certainly wouldn't want to be in rented in my retirement years. There is very little security of tenure - a landlord can just turn up and throw out a tenant at one or two months notice. Tell them they might end up moving home every six months and see if they are still so keen on renting! Rents are also very high and would eat up a high proportion of a pension....maybe their whole pension, the way things are going.

OP, I'd try and find out WHY your parents want to do this....and take it from there.

silvercar

My parents did this, but they sold the house and bought the flat. The house was mortgage free by the time they moved, and they bought the flat outright.

Less maintenance, better position for amenities, no garden to worry about.

They bought in a small luxury block with just a few neighbours that look out for each other, all retirement age.

Sadly my father died, but my mother feels safe living in a secure flat, something she wouldn't have felt in the house.

lvm

They might live in a flat for 6 months, realise they hate it and buy a detached again.

My family home and where parents are is a nice big detached house. I bought a flat when I was 20 as I was desperate to leave. It's small, impersonal (new build) and I can hear music vibrating through walls (as well as guy upstairs snoring before he moved out). And this is actually a "good" flat.

My parents are coming back from their holiday on Sunday to find out I've pretty much moved back in with them!!


Anyway...how will your parents afford a £12k pa rent on £15k pension when they retire and will have spent the small amount they make from sale?

lessonlearned

When my time comes for something more manageable I want a penthouse with a small roof terrace, smack bang in a nice part of a city centre, handy for all the amenities, and preferably with river or coastal views. At least that's my master plan.:D

I have viewed a few flats recently. My big bugbear with many of them is the lack of outside space. I think all flats should come with proper balconies like they do on the continent.

Berbastrike - you don't say how old your parents are. If they meet the criteria would they consider either renting or part owning a flat in a designated retirement complex. Properties which are built for the over 55's generally enjoy security of tenure because most of them are built/owned by charitable trusts or foundations.

A lot of them are offered on a shared ownership basis, some with a share option as low as 25%.

They do offer excellent value for money although the downside is that maintenance charges (especially those with lifts) can be a bit steep and sometimes they can prove difficult to sell.

I used to work for Anchor Trust. My residents varied in age from 55 to my eldest lady of 98. They have complexes all over the country. Well worth a look. Fair rents, reasonable maintenance charges, security of tenure.

LondonDreamer

I don't disagree with your parents wanting to downsize and would have no issue with them buying a flat. But a rental, and an expensive one (I'm assuming this isn't in London, anyway) at that, seems short-sighted.

You haven't stated how old your parents are (that I noticed) but since they're already accessing some of their pension, I'm going to assume close to or even above state retirement age. That seems quite late in life to still have a 75% mortgage, so I'm guessing they'd like to sell to clear that debt (and possibly others, do you know if they have other loans or credit card debts?) off.

I think the biggest question for them is what do they intend to do once they no longer have the income to support the payments? They'd be unlikely to qualify for another mortgage again. If they're planning to rely on Housing Benefit, they may want to look into what they'd be eligble for in their area. I'm not familiar with it, but I doubt it would cover the cost of a luxury rental.

suki1964

Seems like they haven't changed their minds about this since you first posted about this in 2011


Not still worrying about your inheritance are you?