Retired, not enough to buy house too much for benefits?

Ris416

Hi all new to this , hoping someone has sound advice. This is the short version!
My mum is 65 and renting privately , she has some savings but not enough to buy a house and too old to get mortgage. We don't know the best way to use her savings to secure a roof over her head as she gets older. She cannot get housing benefits as she has more in her savings than the threshold allows for this. The flat she is in isn't ideal, but it's cheap, but she worries about "wasting " savings on rent. She is recovering from cancer and I don't want her to worry about this just concentrate on getting better and feeling secure. Any suggestions gratefully received!

Spidernick

Are you in a position (and would you want) to buy something together that has a 'granny annex' (so essentially self-contained) , so that you can keep a close eye on her?

cashbackproblems

Not to be harsh but she should hhave worried about "wasting savings on rent" at a much younger age. She is too rich for HB so the only solution is to rent, maybe look at special elderly homes where you have shared facilities as well as private rooms

Only other solution is to live with you

lessonlearned

Ris416 wrote: »

Hi all new to this , hoping someone has sound advice. This is the short version!
My mum is 65 and renting privately , she has some savings but not enough to buy a house and too old to get mortgage. We don't know the best way to use her savings to secure a roof over her head as she gets older. She cannot get housing benefits as she has more in her savings than the threshold allows for this. The flat she is in isn't ideal, but it's cheap, but she worries about "wasting " savings on rent. She is recovering from cancer and I don't want her to worry about this just concentrate on getting better and feeling secure. Any suggestions gratefully received!

Not enough information to advise.

However here's a few suggestions for you to investigate further.

She could get a mortgage however depends on her income. So does she have a private pension. If she does then speak to a mortgage broker.

She could possibly buy a specially designated retirement property. You can buy into these on a shared ownership basis, starting as little as 25 percent owned.

She could rent in a sheltered housing complex. Look at Anchor Trust who are a nationwide housing association. Check your local council website for local housing associations. She would Still renting but she would have security of tenure and the rents are usually lower than the private sector. Once her savings dip below a certain level then housing benefit kicks in.

She could consider buying a residential park home.

Lots of options but obviously her health will need to be taken into consideration.

I used to be a manager for a housing association and my advice is if her health is compromised then sheltered accommodation would be a good bet.

luvchocolate

I rent from a housing association for over 55's, the rent is reasonable and I manage fine on a pension with no benefits.
No maintenance worry's cheap to heat, no need to use savings at all.

Rosieandjim

What HA are you with Luv chocolate. I looked at Hanover and their rent seemed pricey

luvchocolate

Together housing formally Chevin...I pay just under £80 per week for a 1 bedroom, with a small room I use as an office, big bathroom and separate kitchen which is big enough for a table. Good size lounge
Its not warden controlled but really nice ...ground floor and first floor 39 flats over 3 courtyards.
Nearby Anchor are more expensive but include heating.
I forgot to say I was on the waiting list for just over 2 years

theartfullodger

She should see if she can register with the local housing waiting list & get either council or housing association property, almost always cheaper than private. e.g.
http://www.wokingham.gov.uk/housing-and-tenants/housing-needs/register-for-housing/

Often there is property zoned for over 55, over 60, over 65 etc...

Worth a try & a form-filling!

n217970

Spend the savings?

TBagpuss

Depending on how much she has in savings another possibility might be to look into whether she could buy with an equity release mortgage.

However, her current position, renting privately, isn't necessarily a bad thing - She has no maintenance responsibilities, and can move to a different property if she needs to when she gets older. And if she uses up her savings she will become eligible for benefits.

Depending on your position you might be able look at partially funding a property for her - you'd need to take advice about how to do so: buying in joint names is simplest for inheritance, but may have CGT implications, buying in her name with you lending her money and securing that by having a charge over the property avoids paying 2nd home stamp duty or (I think) CGT, and so on. Each option will have pros and cons.

comeandgo

Once her savings are below a certain amount she will get benefits so she should not worry.