Discounts on properties for over 60’s

COYI123

Am I the only one that thinks it’s bang out of order that pensioners get to get a house that’s 3 bed with a massive discount due to the 60+ scheme , when in reality that should be going to the younger generation to help them out in life 

user1977

You're probably the only one who knows which particular scheme you're thinking about. 

grumiofoundation

As above I’m not sure what scheme this is. Presuming you are talking about some kind of retirement complex? (Have a quick internet search and see the issues that can occur when coming to sell)

Assume you could get said discount - would you then live there? 

maisie_cat

The over 60s scheme is a lease scheme, a bit like renting for life with the rental up front.
The elderly "homeowners" do not actually own the home, the investors do. 
There are not mortgage products available and the investors business case is predicated on the shorter expected lifespan of the tenants.

lisyloo

I am thinking there probably isn’t a massive discount and it’s a marketing gimmick, or if there is its recouped later in service charges which is like a levy on people who can’t do things for themselves.

that kind of accommodation often comes with charges.
in some cases they are justified for the communal facilities, but in other cases they are over priced.

a young able bodied person would probably not want to live in the kind of place where things they could do themselves (like gardening) are charged at professional rates plus profit.

so in some cases it may be bang out of order.  not for the reasons you are thinking but because it’s actually a premium/levy not a discount.

theartfullodger

It's not a massive discount, it's a dodgy shared ownership scheme/scam to rip off trusting but stupid over 60's.  Just like expensive "equity release" schemes/scams.

Artful: 73. No, not taken in by either fraud.

eddddy

Do you mean like these 2 adverts for the same house?


Lifetime Lease guide price for Over 60s: £363,500 based on an average saving of 33% 
Link: https://www.rightmove.co.uk/properties/108803132#/

Priced at: £550,000
Link: https://www.rightmove.co.uk/properties/108738035#/


If so, it's just an attempt to rip-off the over 60s. (Which as you say, is 'bang out of order'.)


It's the over 60s who should be protected from this kind of stuff, not the younger generation.


The over 60s are being offered a lifetime lease for £363k - which might last 20 or 30 years. That's like paying 20 or 30 years rent in advance. And they (or their heirs) own nothing at the end of it.


Whereas for £550k - you get to own the property forever. So after 20 or 30 years, you'll still own a house which might be worth £600k, £700k, £800k or maybe even £1m+ by that time.

Keep_pedalling

theartfullodger said:

It's not a massive discount, it's a dodgy shared ownership scheme/scam to rip off trusting but stupid over 60's.  Just like expensive "equity release" schemes/scams.

Artful: 73. No, not taken in by either fraud.

Where is the fraud in ER? Someone gets a nice lump of cash to be able to have a better quality of life in their later years. Might not be the best deal for the beneficiaries of their estate ( if they have anyone to leave it too) but there is really no down side for the owner. 

youth_leader

I rang to enquire about a bungalow advertised for £230K with a £30K discount, and it worked out the company fee upon my death was about £100K, my kids would have inherited less than half the cost of my investment.  Also worried me if I needed to sell to go into a care home. 

GDB2222

theartfullodger said:

It's not a massive discount, it's a dodgy shared ownership scheme/scam to rip off trusting but stupid over 60's.  Just like expensive "equity release" schemes/scams.

Artful: 73. No, not taken in by either fraud.

It’s not a fraud, any more than car leasing is a fraud. That’s not to say that it’s a good idea for most people, though.

I can imagine that it could appeal to someone who has no close relatives that he wants to leave his property to when he dies. So, he buys a lease for life, and that frees up the rest of his money, so he can spend it (on himself, or even philanthropically!).

Section62

COYI123 said:

Am I the only one that thinks it’s bang out of order that pensioners get to get a house that’s 3 bed with a massive discount due to the 60+ scheme , when in reality that should be going to the younger generation to help them out in life 

There are plenty of schemes available to rip off younger people, if anyone feels they are missing out on this 'advantage'.