advise for elderly parent thinking of selling and moving to renting (and us for reacting)

ariarnia

hi all. got a bit side blinded by mil yesterday. she has decided (well is thinking about) to sell the house and move into rented. 

oh and i both imediate reaction was thats a bad idea. its her decison of course but she wants to come over and talk it thru next week so hoped lovely people here would help see the pro and cons?

basically the problem is her house is big (basement and 3 floors) and not very energy efficient. we (oh and me) spent about about £10k last year getting new windows and also installing a boiler/rads downstairs. plan was to do rest of the windows and heating upstairs this year. mil was still cold and moved in with us for about 6 weeks over winter (which we were okay with. the kids love having her around and we get on). she says she was miserable and cold. plus the house is to big for her (3 stories). i agree house is to big but cold problem was i think because she was worried about bills so didn't have the heating on (it was set to 12 every time we visited). 

she thinks if she sells the house she would get about 80k and then buy a caravan for 20k (not to live in) and rent for 10 years  (she is 70) plus free money to travel etc while shes still healthy enough. rent would be about 600-800 a month i think. her income from work plus state pension plus i think husbands old pension is 2.5k ish a month. area is between blackpool and preston (but i think she wants to move closer to the coast a bit)

i can see the appeal but my first reaction was we give her 30k and she buys a smaller house or flat (basically what she would rent) for about the same price as she sells. then she doesn't have the cost of rent and still equity releases. we can afford it and will most likely have it back when the house sells (wouldn't want a share of the house but maybe a charge on the house in case its sold for care?) 

like i said. its her choice and we will help her as we can. it was just my imediate negative feeling about renting when retired (something thats always worried me). can you help with some things that might be good to help the conversation to help her make the right decision for her (even if its not one i like)?

Sarahspangles

I’d be more concerned she wants to move in with you!  It all seems very complicated? Surely she just needs to downsize, if she wants to change areas then renting is a way to try a new area out, but note it’s difficult in some areas to find a rental property at the moment

ArbitraryRandom

Sarahspangles said:

I’d be more concerned she wants to move in with you!  It all seems very complicated?  Surely she just needs to downsize, if she wants to change areas then renting is a way to try a new area out, but note it’s difficult in some areas to find a rental property at the moment

I would wonder if the problem is the opposite, feeling like a burden. Hence perhaps a reluctance to accept more help from their child. 

Combined with wanting the equity from the house to buy a caravan and travel, I can see the logic if not the appeal.

I would wonder if she has sat down to work out that at 600-800 a month (if that's correct) then the £60k equity after buying the caravan would be spent on rent in between 6 and 8 years. That's ignoring the ground rent on the caravan if it's a static on a site rather than a touring. 

theartfullodger

Capitals?

Those no longer young renting is becoming more common, probably significantly due to 13 years of Tory misrule. 

Probably not applicable to your MiL but some benefits applicable if renting but not if owned.

Maybe look at local council housing register:  some council & HA properties are just for eg over 50s, 60s, 70s etc thus better designed for old 'uns, often with an onsite someone. Plus much less likely to have to move due to Thatcher's iron handbag section 21.

As you say, her decision. 

Artful: 75 yr old.  6 benefits thank you all you generous taxpayers.

MultiFuelBurner

Downsize yes, into rental not sure that's a great idea tbh. No guarantees and may have to move regularly if things don't work out (unless she would like that)

Seems like money and monthly income is not the issue.

Our plan later on in life would be to downsize to a location served very well by public transport and not too far away from our favourite airport.

ArbitraryRandom

theartfullodger said:

Capitals?

I don't think she's looking to move to the Capital - the OP says between Blackpool and Preston

Murphybear

theartfullodger said:

Capitals?

Those no longer young renting is becoming more common, probably significantly due to 13 years of Tory misrule. 

Probably not applicable to your MiL but some benefits applicable if renting but not if owned.

Maybe look at local council housing register:  some council & HA properties are just for eg over 50s, 60s, 70s etc thus better designed for old 'uns, often with an onsite someone.

As you say, her decision. 

Artful: 75 yr old.  6 benefits thank you all you generous taxpayers.

There’s lots of specialist housing for the over 55s.  You don’t need to go through the council to get one.  I moved into a 3 bedroomed house with my ex partner (now my BFF) on a sheltered over 55 site.  They didn’t want a deposit or references and didn’t bother with an inventory  and were happy to let a big property to just 2 of us.  After a year we got an assured tenancy so we are secure.  They completely redecorated the house and put new carpets down before moved in.  There is a massive communal lounge which has seen some amazing parties 

Nearlyold

She could of course rent a small dedicated retirement apartment  from the likes of McCarthy Stone, but with the cheapest at circa £1k pm for a 1 bed Flat, the £80k from her house sale would not last for long. 

MikeJXE

First hand experience, widower of 10 years 

I sold my home 4 years ago (£150,000) wasn't sure to buy or rent so I did the maths, how long would the money last.

My pension is less than half what your Mil is but I have done all that travelling stuff, I  allowed my passport to expire, I am happy with the simple things in life so I don't spend a great deal. I have everything I need and nothing I don't. 

To rent I worked out it would obviously cost me more to rent (I thought) about £7,000 a year more so my £150,000 would last me about 20 years. I was 78 then so that was long enough and I chose to rent. I gave everything to my kids and bought new. 

I moved away (30 miles) 2 bed flat, £600 a month on the outskirts of a city, it was ok but I missed the kids, 2 sons 4 grandkids so after a year at the start of lockdown  I moved nearer to them, again 2 bed flat all electric, that was ok but expensive to heat. After a year I move again across the road 2 bed flat gas central heating £625 a month and I stayed there 2 years 

Christmas 2021 my savings had hardly gone down so doing the maths again I found the savings would last much longer than I could realistically live so I gave half of it away, £10,000 each to the 6 of them. 

Now the cost of living crisis has hit but I'm still doing fine. I moved again  in February to a I bed dual fuel £625 a month nearer to town so I don't use the car as much. My council tax is less and so is my energy bill, Plus I get more interest on the savings, I mostly walk where ever I need to go. Hopefully this is my forever home. 

fryedslyce

How about somewhere like this: https://www.rightmove.co.uk/properties/84014511#/?channel=RES_BUY That would still leave mil £20k, management fees of property are also reasonable at £114 pm

RAS

ArbitraryRandom said:

theartfullodger said:

Capitals?

I don't think she's looking to move to the Capital - the OP says between Blackpool and Preston

It is traditional to use capital letters to start paragraphs and sentence as an aid to reading.