First time buyer /cash buyer

lottiemay

Hi everyone
looking for advice please.  I am lucky enough to be able to be a cash buyer, but this is my first time purchasing a house and I am 60.  Typically, the properties in the area I want to live, to be closer to family, are a bit out of my budget.  Whilst online I came across Homewise, who say that it is possible to purchase a Lifetime lease and so afford closer to what I want. Could anyone advise on whether this is a good option or not?

Thanks

DullGreyGuy

lottiemay said:

Hi everyone
looking for advice please.  I am lucky enough to be able to be a cash buyer, but this is my first time purchasing a house and I am 60.  Typically, the properties in the area I want to live, to be closer to family, are a bit out of my budget.  Whilst online I came across Homewise, who say that it is possible to purchase a Lifetime lease and so afford closer to what I want. Could anyone advise on whether this is a good option or not?

Thanks

You need to run the numbers and also clarify what your thoughts are on inheritance.

For a £400,000 property as a sole 60yo in Cornwall you'd have to pay them £324,000 and when you die your family get nothing or you could pay them £365,000 and own 50% of the property... giving up that level of percentage for saving £35k or £75k doesnt make sense in my head but you may be the type that thinks that when your gone its gone. 

Similarly are you thinking of buying the small granny bungalow now so its your forever home or are you thinking you may have to move again if in your 70s stairs become too difficult for you? 

lottiemay

Thank you.  To be honest I am finding it all a bit of a minefield at the moment. Not really even sure where I want to go! Hopefully it would be the forever home, but you just never know what curveballs life will throw and I’ve had plenty of them.
Ideally I would like to leave something for my family, but at the same time I need to find somewhere, as the lease on my rental is up in August and I don’t want to sign up for another year. I do get your point though about losing the percentage of the house, which is why I asked the question, as I thought it was a bit pointless.
Do you know if there are any other schemes that would be worth considering?

MultiFuelBurner

You obviously know the pros and cons of renting what about owning?

You will need to keep back a maintenance pot ideally so don't spend all your money on the purchase. 

Ideally buying a house to avoid any rising fees associated with a flat.

lottiemay

Thank you.  I had thought about that too, as I didn’t want to put everything into the house, so that I had something to fall back on, if needed

Jonboy_1984

lottiemay said:

Ideally I would like to leave something for my family, but at the same time I need to find somewhere, as the lease on my rental is up in August and I don’t want to sign up for another year. 

Is that a fixed term AST ending, if so you don't have to sign up for full year, just do nothing for it to turn periodic.

Also a quick purchase is likely to take 10-16 weeks, longer with a chain, so you are already likely past that point unless you are intending to find a rental in that area to help with the research.

MultiFuelBurner

Jonboy_1984 said:

lottiemay said:

Ideally I would like to leave something for my family, but at the same time I need to find somewhere, as the lease on my rental is up in August and I don’t want to sign up for another year. 

Is that a fixed term AST ending, if so you don't have to sign up for full year, just do nothing for it to turn periodic.

Also a quick purchase is likely to take 10-16 weeks, longer with a chain, so you are already likely past that point unless you are intending to find a rental in that area to help with the research.

All well and good but section 21 is still valid to issue the rent reform bill has not gone through yet.

So your need to also caveat that could mean only 2 months for the OP from section 21 being issued.

Not everyone likes to go against properly served sections and hang out til the baliff arrives.

I would suggest it is worth the OP stating they are looking for a place to buy and would the LL agree to a rolling one month contract and accept that might come with an increase in rent.

youth_leader

I was looking at the Homewise scheme in the Devon area,  and phoned up about one of their bungalows.  Once the sales agent explained the scheme I didn't pursue it, I want to leave my kids anything I can to help them in the future if at all possible.

I think you need to make a list of what you want, nice to haves, and what you definitely don't want.  There will be areas near to your family, perhaps a bus ride away, that might be suitable.

I moved to the north east with my late husband in 1999 and when he died in 2016, I didn't have enough money to move back south.  I did explore Exmouth in Devon, and Broadstairs/Margate/Ramsgate, but I couldn't afford anything suitable in either area. I settled on a bungalow in a NE village and unfortunately, it was buyer beware, do look after your savings carefully.

Might you be eligible for  Housing Association properties?