Retirement planning, shortfall between 60 and 67

kangoora

I'd be concerned about renting in retirement. In a worst case scenario you could be evicted every 12 months due to landlords wanting to sell property (incredibly unlucky scenario).

The other option would be to stay in current home and do home equity release at a later date - have you considered this? This would also allow the final survivor proceeds from a house sale (less settling with equity firm) to fund a decent care home if needed.

squirrelpie

Audio68 said:

We plan to travel for extended periods and a rented retirement flat (already costed) would be affordable and worry free.

FWIW, I have some friends who did that. The wife now has serious mobility problems and the husband, who is older, can't cope. So they're having to find somewhere else. There is a point to the Lifetime Homes standard.

Audio68

There is a point to the Lifetime Homes standard.

What’s that please?

Black_Cat2

Renting in retirement gives me the heebie jeebies.  Why do you want to give up the security of your own home which you've already paid for?  Not knocking you, just don't understand that 🤔

If you want to travel extensively why don't you rent it out? 

Thrugelmir

Downsize now. Use some of the released funds to buy additional CS pension. 

Albermarle

I'd be concerned about renting in retirement. In a worst case scenario you could be evicted every 12 months due to landlords wanting to sell property (incredibly unlucky scenario).

That would be my concern as well . 

tacpot12

Have you considered the idea of buying an apartment? In my area, ex-Council three bedroom flats sell for about £75,000. At least with this arrangement you would not be responsible for the building maintenance.

As you have no dependents, you might also be able to come to an arrangement whereby you buy a ex-council flat on the open market, but gift it back to the council in exchange for the rent being set at a peppercorn level. This would give you some long term security. I don't know whether this idea is viable, but I think a local authority might jump at the chance to recover a property to its portfolio essentially for free, even if they have to wait 20+ years to be able to let it to anyone else. 

Buying a new property cheaply might be the easiest way to make up the shortfall. You need to think about your housing needs in 10-20 years time, and renting privately might give you more problems as you get old - private landlords might be reticent about giving permission for adaptions that a council would readily approve - although the private rented sector tends to be where the more attractive properties are to be found. 

michaels

Could you get an offset mortgage with an end date at 67 (the bank doesn't need to know you plan to retire at 60) and use that as a cash line until you downsize at 67?

garmeg

tacpot12 said:

As you have no dependents, you might also be able to come to an arrangement whereby you buy a ex-council flat on the open market, but gift it back to the council in exchange for the rent being set at a peppercorn level. This would give you some long term security. I don't know whether this idea is viable, but I think a local authority might jump at the chance to recover a property to its portfolio essentially for free, even if they have to wait 20+ years to be able to let it to anyone else. 

You buy the house and give it to the council and pay rent on it to them as well. Am i misunderstanding what you are saying here as i dont see the point?

Audio68

michaels said:

Could you get an offset mortgage with an end date at 67 (the bank doesn't need to know you plan to retire at 60) and use that as a cash line until you downsize at 67?

Ok so what’s an offset mortgage?