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

TBagpuss

I agree that the first step is probably to talk to her to try to clarify why she feels renting would be better. If she is able to get a Housing Association property then it may be a good plan, and tenants tend to have much more stability and security than if they were to rent privately. May such properties are limited to those over a certain age but obviously with limits on where she can live .

IS she aware that it is possible to get  lifetime (equity release) mortgage to buy a property, as well as to take capital out of an existing one? So if she did want to move / downsize or simply to free up some of the capital in her current home, that might be an option.

Equally, if you re in a position to help her you could so so via a private loan with a legal charge secured over the property - it might make it more acceptable to her if she saw it as a loan not a gift so she didn't feel dependent, as you could frame it as you investing in her property,  plus it protects that money so it wouldn't be taken to pay care home fees  if her own funds ran out., and lets her use some of her capital for travel or whatever else she wants, now.  

What's the appeal of a caravan? A static caravan / Park home might be an option if she is looking to downsize on a budget - many are on sites with limits on how many months you can occupy it for but it might be do-able if she would be spending Christmases or other breaks with you to break up the time, but of course they still have service and maintenance costs.

If she wants a touring caravan then it may be worth suggesting that she rents one first to see if it suits. 

There are of course also retirement properties available to buy, although they often have fairly high service charges and can be hard to resell (which is possibly more of an issue for you and any other potential beneficiaries than for her, unless she is likely to want to move again) 

GDB2222

We are thinking of downsizing, but I had not even considered renting.

lookstraightahead

GDB2222 said:

We are thinking of downsizing, but I had not even considered renting.

Even though I kept harping on about it ad infinitum 😂

bunnygo

if she wants a secure long-term home, renting from anyone except the council is a bad idea - and I say that as a landlord. Policy changes, high inflation and increased interest rates means that many landlords are selling up, and as there are fewer landlords to sell up to so that means tenants are being evicted. This also means that the percentage of rogue landlords is going up as the law-abiding ones are the ones for who it no longer makes business sense.

Anyone can go on the council list, and at her age she may even get lucky. Councils don't die, divorce, or change their financial plans; housing associations can be shockers (ref recent ITV reports) but that doesn't apply to all of them. If she plans to be away for long periods, she does need to take care though regarding occupancy conditions.

It does seem simpler to downsize and buy somewhere more suitable. Any equity can also be used for paying care fees should that arise.

MultiFuelBurner

I agree with the above there is much unrest for private landlords. They do not know what will happen with the laws on EPC requirements for 2025 which could cost them £10-25k per rental with no guaranteed schemes to assist.

Many areas already have a lack of rental stock and this could all disappear over the next 24 months.

luvchocolate

I waited 2 years for my housing association over 55s flat. 
But mine was a want rather than a need.
I was living in private rented and actually retired 3 months before moving. 
6 years on and the best thing I could have done 

bouicca21

I rented for a couple of years when splitting up from the ex.  It was ghastly. The first landlord wasn't paying his mortgage, and unknown to me there was already a possession order in place from a previous episode of arrears.  Second landlord just suddenly decided to sell up.  

I have since bought a flat and, whilst I certainly moan about the management company, I can rely on them to sort out reliable maintenance people. It’s accessible so unless I lose my marbles I should be able to stay here until I leave in a coffin. With no rent to pay and a small private pension as well as the state pension, I can afford to travel and generally enjoy life.  

Perhaps I was just unlucky but I would never, ever want to be at the mercy of a landlord again.  No one should underestimate the security that comes with owning your own place.    

Green_garnet

I hope your mother-in-law makes the best decision for her and it is so good that you will support her choice.

For me selling and moving into secure rented housing was a good choice - three years ago now and I'm still very pleased with my decision.

I haven't posted here for a while and I am still thankful for the kindness and encouragement I received from others on MSE. I was helped considerably by MSE 'Posters' to get me through a really difficult time - housing related.  Thank you again.

Green_garnet

ArbitraryRandom

A secure tenancy is a wonderful thing, but realistically would social housing be an option here? 

From the OP £2.5k a month works out to somewhere around £30k a year (Obviously not sure if that's before or after tax) and the lady would have a significant sum of money in the bank, at least until it was spent on travel; Plus there's no indication, so far at least, that the move is due to any disability or similar urgent need. 

I'm not hugely familiar with the Preston area, but as far as I know that would put someone in the lowest band for social housing and due to the current economic 'challenges' facing the UK I doubt that's a short list. 

luvchocolate

There is no upper limit for your financial position to get a housing association property