Help to buy for pensioner

TrickyNicky

I am looking for advice re using equity release, or any other scheme, to allow my sister to move to a better house in a nicer area.  She has a pension which just about covers her essential day to day living. She owns a small, one bedroomed maisonette but the area has gone badly downhill and she no longer feels safe. She has just inherited some money and wants to move.  The extra money will help her to buy a similar sized property in a nicer area but properties this small just don't exist. If she moves into a slightly bigger property which is more expensive, she can't also afford the extra to move to a nicer area as well.  She isn't keen on a flat with shared entrance/ownership, having had a bad experience previously. She is single and has no children/dependants. I wondered whether she might be able to use equity release, or something similar, to fund something which is slightly out of her price bracket?  She also has to consider whether her pension will be able to afford the additional costs of a bigger property i.e. more heating, lighting, repairs etc., especially as she gets older.  Has anyone any thoughts or experience that may help me to help her.  Many thanks in advance.

youth_leader

My aunt on the IOW lives in the one bed ground floor flat of a converted house, she has the front garden.  Ground rent is only peppercorn.  Has your sister had her property valued by estate agents yet? Equity release is to release the value in your home, normally for home improvements, she won't be able to sell easily if she takes this route. 

coachman12

This sounds a difficult one and I feel sorry for your sister as she has an unusual property and is obviously concerned at an area that is going downhill, which can be frightening for old people and forces them to spend more and more time indoors.
I have no real magic answer. It seems very unlikely that she could find another miniature maisonette, but she should check with all local Estate Agents to see if they have seen any such properties.
I wonder if you have heard of Hanover Anchor who specialise in both rentals and purchase for independent elderly people, as well as offering assisted living and residential homes. 
There is also some Govt help 
https://www.anchorhanover.org.uk/our-properties/properties-for-sale/our-tenure-types
My only thoughts turn to old Victorian houses and villas that have been into flats, but you might find a problem in finding one in which flats have separate doors for each flat. Once again, phone every local Estate Agent and ask about that sort of accommodation.
I wish your sister every hope of spending her older years in a flat and area where she feels safe and happy.

xylophone

I wonder had your sister considered approaching a Housing Association/Almshouse type set up and renting with a secure tenancy?
The equity from her property and her inheritance could be used on comforts while her pension funds the rent?

carefullycautious

She could approach the local authority in the area she is looking to live and go onto a waiting list for sheltered accommodation.
She would have a better chance if she had family support in the given area. She would be classed as vulnerable due to her age. There are lots of housing associations also that she could apply to as xylophone stated above. Buying somewhere in older age and all the associated costs is not always the answer.

knightstyle

If all else fails she could get a small mortgage, some lenders accept older retired people. I am 75 and getting a small one from Leeds BS.

MFWannabe

I would say as she I said single and no children then the alternatives suggested above would be better options. There’s no one going to inherit the property so doesn’t really need to buy?  

TrickyNicky

Thanks everyone for your ideas. I will have a look at the Anchor Hanover link as not aware of this before. My sister is only 67 years, so not elderly as such and not ready for sheltered accommodation. However, she is tiny/petite, lives alone, and the local area is full of people on drugs, including her neighbour.  He, and his house, are really unkempt with rubbish and old furniture thrown out in the garden.  He was reported to the council, assumed wrongly that it was my sister, and chopped down her tree in anger. He smokes dope and it infiltrates her house along with all the bad odours.  I thought a Lifetime Mortgage would allow her to buy a property that is slightly higher value than she can afford and maybe draw down more in future for a big bill i.e. a new boiler etc.  Can she do this or does she need to own the property first before she can apply for equity release does anyone know?   I don't think she wants to rent ever again but besides, she has fought for years to pay back a mortgage so why now start renting and using the capital to pay the rent.  Thanks again to everyone for your reply.

TrickyNicky

I should also add that her pension is only sufficient to buy food and day to day essentials. She doesn't have enough pension to pay any rent. 

McKneff

Her state pension should be be at least £600 plus per month. She should ask for a benefits check,  the dwpnwillndo it for her. She may be entitled through help with council,max, pension credit etc etc. 

luvchocolate

I live in a one bedroom flat in a lovely courtyard setting. 
Housing association is Together housing. 
Over 55s only not sheltered..we are a small and happy community. 
I pay full rent £330 a month..state pension covers all bills. 
I would search for all housing associations in the area and then enjoy spending proceeds from flat sale