rent or buy council flat

stu12345_2

i live in a nice low rise flat in cornwall, with partner were both nearing 50, got max discount.
i estimate rent till i retired rising cpi plus 0.5% every 2 years. would be around 70000 total.
that includes full free repair and updating.
if i pay i estimate with say 4% mortgage total would be around 33000, plus say 500 a year service charge,total 40000 plus.
but concern is a diff of 30000 saving, that may go to major works over next 16 yrs, thus cancelling any savings buy buying.but what about after 65, maintanance costs, how much do we keep for rainy day, and if we need care fees, then does rainy day fund get halved, thus one of us only has 50% now to cover repairs.
if i reach 65, and on low pension, id get housing benefit and the right to move to council bungalow, if one came up for bidding.if i carry on renting.

my worry is i wish to move to a couple of diff towns, eventually, our jobs are here, so cant move at mo. if i bought i have more flexibility in moving later in life.
i used to do mutual exchanges in past, but housing associations seem to say max is 1 bed these days as a couple as they want to make best use of their stock, we rent a 1 bed, hence harder to swap.

if i rent i could swap to an even more affluent town via a swap, but may take years to find a swapper.
if i buy, im basically restricted to the asking price of my flat versus buying another in a more affluent town.

i cant sell up and downsize as the advice of websites seem to think, we all have 3 bed detached, we have 1 bed flat, so to move would mean selling up and moving to blackpool etc to release any cash diff,which we dont want.
we would sell up and rent if it was a lifetime tennancy somwhere else.
but worry is if one of us gets frail, then the capital would be halved, care fees,leaving my partner having only 50% to make the private rent which wouldnt be enough.

so how do we move home, without the risk of not having enough for private rent or repair costs if buying or never finding a swapper.

stu12345_2

im used to excellent service from council, eg websites, newsletter, upgrades, a professional company. but i admit its a 50 yr old flat and ive seen some impressive private flats, say an extra 50 a week compared to my rent, but id be in for a shock concerning a private landlords dos and donts.
id like the same service from a private landlord like i get at mo from council, even if it meant a bit extra in rent, but does that exist, id have to buy and sell up and hope funds dont run out, but im not keen buying either if it locks all my cash away in a fixed asset.
equity release doesnt work in a 1 bed leasehold at 60

if i could rent in a new town in a lifetime tenancy when retired, that be perfect, but cant find a swapper these days, so apprehensive about the buying, sell rent or buy sell buy route.
but i am keen to move to a diff town or two over next 10 yrs

my flat is sound, non concrete or steel , although it looks a bit municipal.it is i suppose,like having the only council property in henley on thames lol.
my town is affluent, but is where poorer folk rent council, very few properties council tho, big waiting list, or they rent private or they are wealthy and retire to a purpose build flat.
so if i buy do i have a good target audience or not.
i would like to live in seaton, bognor, windsor, brighton, poole etc when retired but the difficulty in finding a swapper would be huge and the price diiff if i bought between my flat and those towns will be diff also, only renting private seems the only affordable way, but how to i do it, how do i work out a def plan to be able to move, but still afford to.

stu12345_2

the town i live in is 50% low paid and 50% very wealthy, hence if i buy and sell the wealthy prob wont buy it and the low paid cant afford market price.
i can afford it only via the discount id get.
the low paid find even renting private is cheaper than buying, but not over 50 yrs obviously, hence they tend to move up country or wait yrs for a social home.
so not sure if i have a good target market if i buy and sell it.
prob a buy to let investor would grab my flat with both hands, bit like getting a cheap flat in knightsbridge, poor comparison, i know, but you get my drift.

on a sidenote, i saw on gumtree private landlord flats to rent permanately,in devon, ive never seen that privately before, what if landlord dies or need care costs, or children inherit his property, does it really mean lifetime private rent, if so that would suit also.

Cheeky_Monkey

OMG! I have read your 3 posts and, frankly, my mind is now completely 'boggled' :eek:

I can't offer any advice as the 'facts' and your questions are completely lost amongst the waffle

stu12345_2

the pros and cons of buying versus council renting if i want to move location, whats best, private rent, mutual exchange,buy sell buy(but cant afford, new location)

diff between total cost of renting vrs possible major repairs when retired, potential target market if i buy and sell.
prob with council renting and unable to relocate via a swap

basically i want to be more mobile when choosing where to live when older, but dont know how to do it low risk!

advice plz

Pixie5740

You have a secure tenancy at the moment in your shoes I would hang on to it and not go into a private rental. If you want to move then try getting a mutual exchange.

If you buy your current council property you would have to wait a certain number of years before selling or you'll have to repay part or all of the discount. If you buy you will be responsible for all the repairs and maintenance of the property. Should you require residential care later in life your home would be taken into account when calculating your capital assets and could be sold to pay for your care.

stu12345_2

ive done that pixie, i know, but overall buying can be cheaper even with repairs.
i cant find mutual exchange any longer as councils, want to make best use of properties, eg 1 bed, not many 1 beds to exchange with these days.
i know id have to wait yrs to sell before repaying discount, but i wouldnt be selling for 5 to 10 yrs as i need to work here to pay the mortgage on flat.
just that a lot of folk move about private renting for social moblity.
and id like to move town eventually to my preferred town, but 3 choices, rent private, council swap or buy and sell, my 3 choices.

how do folk relocate easily to prefered town if they rent council, or own but new town is more expensive,
private renting seems most flexible, just need the same type of tenancy i have with council, thats the only catch.
the gov are debating a right to move policy for social renters, but nothing on internet since 2013 about it, where social renters can relocate to new council if it means closer to a new job or be near family without the need to rent private or have a home to buy and sell.

where the new council has to keep a % of dwellings available for those wanting to rent for folk relocating via the right to move policy

if this comes true then, that solves all probs, do you know any more news concerning the right to move policy discussion.

ps, mutual exchanges used to be easy in past, now they are much harder to find a like for like swap, and if you do the swapper can pull out even on day of move, unlike buying and selling where you can sue them if they dont complete sale.
or private renting, where you see the property anywhere in uk you can afford, pay deposit, rental and you move in easily, its much harder if you rent council or housing association these days to be more mobile.

hence the right to move policy or right to buy policy, both helping folk move around uk for work or personal reasons.

if either of these policies didnt exist the millions of social renters would be stuck in the same town that they got allocated a property in.mutual exchange doesnt work easily these days.
you need flexiblity of choice

but my worry is flexibilty of moving to preferred location once you are nearing retirement age if you dont have a big private pension or equity assets, but have been a social renter for years,thats my dilema

why cant we be more like germany, regarding housing

carefullycautious

Nobody can advise you on what to do, only you can make that decision.

However, if you purchased the property in joint names as tenants in common and you one of you needed care in the future I believe that you would not have to sell the property for fees. You need to look into this on the government website.

Yes you would have to maintain the inside of the property whilst paying a service charge and any future works bills that need doing on a flat.

If you stay as a council tenant check whether the area local authority you wish to move to will allow you a 2 bed. I say this as my authority have told me that we would be allowed a 2 bed property if we wished to exchange from our 1 bed, we are late 50s 60s and pay full rent.

You may find someone wants a one bed from a two. Or you could do a three way swap. So someone in a three bed wants yours, you look for a two bed who wants a three and there you have the swap.

If you buy your one bed and it never realises the price you need to move to your chosen areas why buy? You would be better exchanging as you may get there and hate the area and need to move back.

Not sure if this helps as it is a difficult decision.

Pixie5740

You won't get a private rental with the same type of tenancy as you have with the council.

People rent privately for a number of reasons. The most common being the flexibility to move for their careers, whilst saving up to buy somewhere, because they can't get a secure social tenancy since they're like gold dust thanks to schemes such as Right to Buy.

Your posts are a bit rambly but it sounds like you've decided that buying is the best way forward for you.

stu12345_2

my concern is i enjoy renting with council and the superb repair service included in the rent.
its the recent changes in mutual exchange polcy that gets me annoyed.
my council banned anyone renting a property in an exchange that was larger than required despite the fact the housing act states mutual exchanges can be refused if the swapper exceed by 2 bedroom , one is fine.
but they said the act is open to interpretation by council, but strange thing is they changed their interpretation exactly the same time the bedroom tax came in,
even tho they arent allowed to legally combine the welfare act with the 2005 mutual exchange housing act.
i fought them over this for months.

its only housing associations that allow extra room in a swap as they dont have to follow the housing act as its a assured tenancy, they decide swap based on wages.but associations are dearer to rent, dont have right to repair or right to buy clauses

but housing associations make their own rules too and can stop a swap, thing is you wont find out if they approve swap to a 2 bed till you put the paperwork in, and that involves finding a swapper, getting the right place and person, all without wasting their time cos association wont give a clear answer before you even start looking.!

carefullycautious

Do you pay full rent?

So are you saying you can have a 2 bed? I would have thought that was enough for you