Mortgage during our golden years

mjkirkton

My wife and I own our house outright (recent valuation  £220.000) we are both 73 years young and we want to move. Where we want to move to we would need to pay about £280.000 to get the same quality house. Albeit we have savings we only have £18.000 and we could not afford to pay any monthly sum. We have four children and we want to leave them at least £50.000 each. Has anybody got any suggestions please. My kindest regards

Secretsusie

Surely if you can't afford any monthly sum then you can't afford a mortgage? 

AskAsk

Secretsusie said:

Surely if you can't afford any monthly sum then you can't afford a mortgage? 

lol 
OP - you are asking a lot.  if you want to leave so much of your assets to your children then you can't have what you want.  also don't forget that if you end up in care, your house will have to be sold to pay for care fees, so stating that you want to leave 50k to each of the 4 children is a bit of a bold statement.

eve824

I don't want to sound rude, but it sounds like you can't afford to move to a house worth £280k?

greatcrested

To pay the shortfall between 220K and 280K + costs (estate agents, legals, moving) you will need about £70K.

* mortgage - but that will cost you about £675 per month over a 10 year term - assuming you can get a mortgage at your ages.

* gift from your children, to be repaid out ofyour Estate on death.

* some form of Equity Release? (basically a loan/mortgage that is repaid fromsale of the property on death) - Research carefully!

You also need to consider your future needs. At 70+ you should consider health and care, and may need your £18K in reserve........

AdrianC

You currently have £238k of assets.
You want to borrow £42k minimum, to buy a £280k property.
You will, of course, need more money on top for the legals etc, and any work done to the place after you move. So let's say £50k.
I presume you also wish to retain some savings...
 - but -
You do not want to pay anything out per month post-move.

So this mortgage debt is just going to rise and rise and rise, isn't it? Presumably, you're thinking of some lifetime mortgage product, where the interest and capital is all repaid on your death and sale of the property? But that might be a decade and a half or longer. A £50k mortgage over 20yrs at 2% is going to see north of £10k of interest - and I doubt you'd get a rate like that on a lifetime product.

How much you leave your children is not down to how much you want to leave them. It's entirely down to how much you have left after you die. That might be after an extended period in a residential care home...

macman

You don't tell us what your income is: State pensions only, private pensions? Your expectations are unrealistic: you can't move to a more expensive property unless you borrow, but you say you can't afford to service a mortgage or loan. 
You also have very little in savings as a fallback.

RyanHello

OP is a little deluded. (not an insult btw) . If you end up in care, the care home will take the lot and you'll be left with about £22k . It is criminal, but this happened to my friends Nan. £400k house GONE. 

eidand

RyanHello said:

OP is a little deluded. (not an insult btw) . If you end up in care, the care home will take the lot and you'll be left with about £22k . It is criminal, but this happened to my friends Nan. £400k house GONE. 

why is it criminal? It was her money used to give her the best care in her old days. 

mattyprice4004

RyanHello said:

OP is a little deluded. (not an insult btw) . If you end up in care, the care home will take the lot and you'll be left with about £22k . It is criminal, but this happened to my friends Nan. £400k house GONE. 

It's not criminal, the taxpayer shouldn't fund care when assets are available to pay for it instead.