Help to buy for pensioner

HampshireH

Sheltered accommodation is usually over 55s and independent living. Either in bungalows, flats in a scheme or maisonettes. Often the only additional function is a pull cord system for emergencies.

You say she isn't ready but is she going to want to move again? She is nearly 70.

Sheltered accommodation doesn't offer the level of support it used to. Funding has been significantly cut in the sector.

I know people in sheltered bungalows. It's no different to renting anywhere else except it's a safe tenancy. They sold up when they moved there.

The waiting list isn't like normal social housing where you cannot own a home or have available funds over x amount.

It is a really good option for your relative

AskAsk

in our area, homewise is a big player as there are a lot of old people around here.  they buy part of the house with you and they take the property when you die.  depending on the agreement, you will also have some of the property when you die, so it is all calculated in the property share.

it allows people who are over 60 to buy properties that they would not otherwise be able to afford, or to release equity but not become a tenant.

i think they will consider properties everywhere, so you could have a look at their website.

xylophone

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. 

With the capital from her inheritance and the sale of the existing property as well as her pension I doubt there would be a problem? And almshouses are usually part of a charitable foundation...

See https://www.almshouses.org/resident-vacancies/

GDB2222

There have been lots of interesting answers but nobody has answered the specific question about lifetime mortgages. I think that this may be a very good solution to your sister getting a new home. However, these are usually taken out by people already established in their homes and looking to raise funds, rather than for home purchase. I suggest talking to one of the companies offering these to find out what they say.

There are also schemes where your sister sells in advance  part or all of the value of her home after her death. These are known as home reversion schemes.

It may be worth talking to a broker who is part of the SHIP scheme that specialise in these arrangements.

Edit: I’m out of date. SHIP has renamed itself as Equity Release Council. 

wilfred30

Equity release is releasing some of the equity in the property you already own.  It is repayable either on death or going into a care home.  It is possible to transfer it to a new property but only with the provider's permission as it's worked out on loan-to-value.

The interest accumulates and can either be added to the ER amount payable upon redemption or you can opt to pay it as you go.

TrickyNicky

Thanks everyone for all your kind suggestions. I have relayed them to my sister and we can look into them together to see what works best for her. I appreciate you taking the time to comment.

[Deleted User]

wilfred30 said:

Equity release is releasing some of the equity in the property you already own.  It is repayable either on death or going into a care home.  It is possible to transfer it to a new property but only with the provider's permission as it's worked out on loan-to-value.

The interest accumulates and can either be added to the ER amount payable upon redemption or you can opt to pay it as you go.

Equity Release can also be used to purchase a property.  As long as they have a substantial deposit they could use Equity Release to make up the difference on a purchase.   Obvious downside if she isnt able to pay anything is that the equity will be eroded over time

TrickyNicky

Thank you Deleted_User, Wilfred30 and GDB2222. I have looked into your suggestions/answers and this is the route we are pursuing. Through the Equity Release Council we have found someone to help and he has agreed that my sister can buy a property using Equity Release (Lifetime Mortgage) to pay the additional amount that she can't afford and also they will give her a future agreement to drawn down money should she need extra for a large repair/home improvement etc.  I think it suits her as all can be done at the same time as she buys and sells her properties, using the same solicitor. Job done.  I can also support her with a lot of the stressful bits. Fingers crossed we have a plan for the New Year and get her out of the Hell she is coping with.  I do appreciate everyone's suggestion.

Murphybear

carefullycautious said:

She could approach’s 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.

We live in a lovely over 60s sheltered housing run by a HA.  You don’t need to go through the council, you go directly through the HA.  They have properties all over England.  There are always waiting lists for anywhere near London and places like Bournemouth, Isle of Wight but many other areas you don’t wait too long.  

spaghettibolognese

Murphybear said:

carefullycautious said:

She could approach’s 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.

We live in a lovely over 60s sheltered housing run by a HA.  You don’t need to go through the council, you go directly through the HA.  They have properties all over England.  There are always waiting lists for anywhere near London and places like Bournemouth, Isle of Wight but many other areas you don’t wait too long.  

How long did you wait before getting offered sheltered housing?