Can i walk away from £80 000?

Helen27

km1500 said:

I suspect Helen that the only way you can do this is to sell the equity in your inherited house.

You say you new house is about 400k - let's say they value it at 380k and give you a 80k RTB discount.

That means you will still have to find 300k - probably nearer 320k with stamp duty, fees etc

Even if you got the full 250k from your share of the inherited house, you would still need 70k or so to complete the purchase.

This means getting some kind of mortgage. With such a big 'deposit' you may get one, but you may not.

Do you have any other family members (children etc) who can help you, as I assume it will benefit them in the end?

Thank you so much we dont mind a little mortgage this was one of our thoughts. 

Helen27

km1500 said:

I would try and 'sell' the share in the 500k house and the use RTB to buy your home

Yes this is an option thank you .

Helen27

in_spired2 said:

I'd think the first thing to do is find out how much it actually would cost to buy your home, so you know how much money you need to find?  Then you can think of ways to free up/raise that money if it's affordable.

Yes indeed. Thank you for your input. Good luck with your goal x

Helen27

Nebulous2 said:

It may help to think about what it is worth to you, rather than that you are losing out on £80k - which is a huge sum for most people. 

At the moment you have a house, at a modest rent compared with the private sector. If something goes wrong the landlord has to fix it. If you can't pay the rent then there may well be state help to do so. You are guaranteed the house as long as you need it. 

You are thinking about swapping that for a huge financial commitment, possibly £300k as said already, at a point in life where many people are winding down. If it needs a big repair, such as a new roof you will be responsible. If the council decide to do some major works in the estate you might be expected to pay a share. If your finances fall apart you could even lose the house. 

In some ways you are better as you are than taking on a huge long-term financial commitment. 

Thank you for your advice.yes this is a thought we had hence the heading. Its a big carrott to dangle and so confusing as it could be an oppertunity  we wouldnt get again and dont want to do anything in haste or be foolish down to greed so very conflicted with this all but greatful for all the advice x

born_again

I think the way to look at it is.
Not walking away from £80K, but having to spend say £320K

Ainsty

Please don't forget that if you buy your council house you will have to pay for all the things the council currently do. This could include insurance and repairs. How will you pay for a new roof or new boiler if you buy the house?

Preacher64

If your pension and share of the inherited house form the bulk of your assets, then I would think you may be stretching your financial commitment too far at your age to take on a mortgage of that magnitude.

Tempting as the discount is, you may not fully benefit from the ownership financially, leaving an inheritance whilst having a comparably frugal retirement.

In your shoes, I would consider investigating how to free up your share of the second house and look to be more comfortable financially in retirement while continuing to rent.

enthusiasticsaver

Even with a discount you will still need to find £300k so unless you realise a large amount from the inherited property you will have to take a mortgage and cash in most of the pension and even if you are able to do this the tax paid will be considerable.  That means you will have to service the mortgage and maintain the property on very little income and most banks won't lend past 70 unless you do equity release.  

km1500

Nebulous2 said:

It may help to think about what it is worth to you, rather than that you are losing out on £80k - which is a huge sum for most people. 

At the moment you have a house, at a modest rent compared with the private sector. If something goes wrong the landlord has to fix it. If you can't pay the rent then there may well be state help to do so. You are guaranteed the house as long as you need it. 

You are thinking about swapping that for a huge financial commitment, possibly £300k as said already, at a point in life where many people are winding down. If it needs a big repair, such as a new roof you will be responsible. If the council decide to do some major works in the estate you might be expected to pay a share. If your finances fall apart you could even lose the house. 

In some ways you are better as you are than taking on a huge long-term financial commitment. 

this is an excellent post and worth considering

london21

You mentioned 80k RTB discount but don't yet know what the purchase price is?

Also with RTB they only do those on residential mortgage. 

But if you can release your share of the inherited property can buy cash.