Mortgages and elderly relatives advice sought

Mojisola

pol-zeath wrote: »

Excuse me but what happened to the "be nice to new posters"?

exmachina wrote: »

If you have anything to advise on the situation as per the name of the forum 'House buying renting selling', then advise, otherwise it's called 'keeping your mouth shut!'

exmachina's second post!

Being nice works both ways.

slopemaster

pol-zeath wrote: »

Excuse me but what happened to the "be nice to new posters"?

I think it evaporated after the new poster told GM to "keep their mouth shut" in response to asking a perfectly reasonable question.

G_M

My mouth is shut but my fingers keep tickling the keyboard :kisses3:

pol-zeath

Pixie5740 wrote: »

I think that went out the window when the OP was rude to G_M and started throwing her toys out the pram when posters asked some perfectly reasonable questions such as why do the OP's parents want to sell?

A reasonable question asked in a confrontational manner

tomtontom

I didn't see it as confrontational - G_M asked a valid question and went on to give constructive suggestions. I'm not sure what else they could have done - hugs?

DandelionPatrol

exmachina wrote: »

• They want to sell the property and downgrade to release some equity to pay off the debt and then find a place cheaper and have some change left over for some niceties in their retirement.
• Obviously, I'd like them to keep the property.

From the first post, your wishes are plainly in conflict with what your parents want.

No one is going to waste their time giving you advice on doing something which is not in line with your parents wishes.

Hence G_M's post was a very reasonable attempt to help you get over that hurdle. But obviously you don't want that help and you are not prepared to take help here on the terms on which it is offered.

Everyone is cool with that. Good luck elsewhere.

DandelionPatrol

exmachina wrote: »

Hi, I was hoping people might be able to give me advice on this situation.

I own two properties both worth approximately £300K-£400K in East London and receive a rental income from one, which I use to help pay the mortgage on the 2nd property in which I live. I also work and pay the mortgage, and the situation is reasonably balanced so I can cover all my expenses and costs. I also have about £40K in savings.

The situation is that my parents are now both retired and live in a property worth £600K, but it has a £110K mortgage on it which is coming up for repayment in a year or so.

They want to sell the property and downgrade to release some equity to pay off the debt and then find a place cheaper and have some change left over for some niceties in their retirement.

Obviously, I'd like them to keep the property. Do I have any options whereby we can hold on to the property and they're still able to have some comfort? I might be able to borrow another £50K from somewhere. Here's hoping..:)

Just to keep the context for posterity.

Daniel54

exmachina wrote: »

Like I said, millions and millions of people face this situation daily...think about that!

I decided to Google it instead of thinking about it.In 2014 the number of interest only mortgages reduced by 460,000 ,of which 25% had come to the end of their term.Of these,16,000 had matured and not yet been repaid,although the CML expected that in many cases homeowners would be in the process of paying off the lump sum

http://www.bbc.co.uk/news/business-34325751

Without doubt that leaves a lot of people in difficult situations,particularly if they have insufficient equity to buy a downsized home outright.Fortunately your parents are not in that position and,as others have said,their plan seems a pragmatic solution to having a retirement which is mortgage free where they can also enjoy/spend some of the tax free gain from the equity released.

You have given limited information.In particular,the value of your properties is meaningless without details of the accompanying mortgages.As your parents are looking to release say £150k plus,it seems unlikely on the face of it that you have this sort of money unless possibly you have sufficient equity in the BTL and sell it.

Even then,having that much money tied up without return in your parents property for a further 20 -25 years doesn't seem that sensible.


If you are concerned for your children' future,I cannot see how depriving yourself of a huge amount of money, which your parents don't need, is going to help

Pixie5740

OP, if your parents want to sell the property and you want to keep it why don't you just buy it from them? That would give both parties what they want. From the information you have I have no idea whether or not you can raise £600k from your £40k savings, remortgaging your current properties and/or getting a new mortgage. Unless you're hoping to buy the property for a lot less than £600k?

getmore4less

exmachina wrote: »

Hi, I was hoping people might be able to give me advice on this situation.

I own two properties both worth approximately £300K-£400K in East London and receive a rental income from one, which I use to help pay the mortgage on the 2nd property in which I live. I also work and pay the mortgage, and the situation is reasonably balanced so I can cover all my expenses and costs. I also have about £40K in savings.

The situation is that my parents are now both retired and live in a property worth £600K, but it has a £110K mortgage on it which is coming up for repayment in a year or so.

They want to sell the property and downgrade to release some equity to pay off the debt and then find a place cheaper and have some change left over for some niceties in their retirement.

Obviously, I'd like them to keep the property. Do I have any options whereby we can hold on to the property and they're still able to have some comfort? I might be able to borrow another £50K from somewhere. Here's hoping..:)

Do they want to keep the house?

if not you will neet to raise enough to get them another place pay off the mortgage and leave some change left over.

IF they would not mind staying but don't want the mortgage you need to be raising at least that much and more for the "comfort"

If you want to keep it then sell one of yours buy it off them so they can buy their own place and have some money left over.

if you want to keep all three then you may have issues if affordability and rent from 2 won't raise enough to buy them out.