I'm retired, low income and want to move. I own my home outright.

peterhjohnson

Browntoa said:

Equity release is not an option to use 

ER might not be right but it could be. I used it to move to a more expensive property some years ago. There are some disadvantages but none applied to me. You need to check all the details.

RHemmings

Hoenir said:

There's a company called Homewise that operate in certain parts of the country. Through them it's possible to buy a more expensive property with them retaining a financial interest. They can be found on Rightmove. 

My impression of Homewise deals, which could easily be wrong, is that they offer only a modest increase in budget, while the reduction in future equity is more substantial. Clearly they aren't in it for charity, but what I've seen often describes their scheme as a bad deal overall.

There is an older thread here with an example, and some input from Homewise itself. https://forums.moneysavingexpert.com/discussion/6314038/homewise

It could be that this is the OP's only option, but I still wonder about a ground floor flat. 

Bookworm105

ml4548 said:

Unfortunately yes, and I need to stay near my family. I have a very low income, no chance of borrowing on that.

then realistically you cannot expect to buy somewhere costing more than you can raise in cash from selling your own + using any savings you have 

Do you mean there are literally no properties (bungalows?) near family in your price bracket?
or
Do you mean you are unwilling to downsize?

FreeBear

RHemmings said:

Hoenir said:

There's a company called Homewise that operate in certain parts of the country. Through them it's possible to buy a more expensive property with them retaining a financial interest. They can be found on Rightmove. 

My impression of Homewise deals, which could easily be wrong, is that they offer only a modest increase in budget, while the reduction in future equity is more substantial. Clearly they aren't in it for charity, but what I've seen often describes their scheme as a bad deal overall.

There is an older thread here with an example, and some input from Homewise itself. https://forums.moneysavingexpert.com/discussion/6314038/homewise

It could be that this is the OP's only option, but I still wonder about a ground floor flat. 

Shared ownership with a local housing association would come with fewer disadvantages. Worth looking in to.

But getting a mortgage to buy a more expensive property without any income is a non-starter. And that is on top of all the other costs associated with moving (E.A. bills, legals, removlas Co, etc).

Bigphil1474

Go back to work, get a mortgage, buy bigger house, pay off mortgage, retire?

Jude57

ml4548 said:

Is there a way I could raise some funds to buy a more expensive place? I need a bungalow now.

Could your current home be adapted to meet your needs? There are grants available to pay for some adaptations such as ground floor wetrooms etc. so I'd recommend speaking to the adaptations team at your local Council. They'll do an assessment of your home and explain your options, as well as whether you'll be required to pay for the adaptations they identify. As you're on a low income, you might not have to pay anything. You might not need to move if your current home can be made to meet your needs.

Also, are you claiming all the benefits you can? Try putting your details into:

https://www.entitledto.co.uk/

This could make a difference to your situation so well worth checking.

oystercatcher

I have a couple of friends who have moved to residential park homes because they couldn't afford a regular bungalow.  There are drawbacks, you have to pay ground rent which can be quite expensive although my friend is entitled to some sort of housing benefit to help with this. Might be worth researching though. My friends are very happy there, 

bouicca21

Seems that the realistic options are some sort of over 60s development (cheapish to buy but often with high service charges) or as suggested earlier in the thread, a ground floor flat.  

annetheman

I second the move to Homewise if this is your only option but caveat that it should only be considered if you are okay with leaving not much inheritance for any dependents.

My dad is doing this, but because me and my sister are very financially stable with our own properties, and our mum passed away, we want him to have a bigger budget to live in his "last" house comfortably. We don't care that they're essentially going to take away about £100k of inheritance.

My dad's illustration - his house is locked in to sell to developers for £300k. He is looking for a standard construction house on the open market with a budget of £355k, where the £55k is coming from Homewise.

Homewise will get 50% of the future sale value of the property in the event of his death or a move into care (they would force a sale). 

Let's say in 2045, the house sells for £400,000. Homewise gets £200,000 and we (inheritants) get £200,000 vs if he had bought a house for his original £300k, which would be pokier in a worse area.

So for us, it's more important dad gets a little boost up to have a nicer house in a nicer area!

Also, Homewise offered him a £430,000 budget if he leaves nothing to us -- so if Homewise gets 100% of the future sale value, which he thought was outrageous and has refused.

RHemmings

annetheman said:

I second the move to Homewise if this is your only option but caveat that it should only be considered if you are okay with leaving not much inheritance for any dependents.

My dad is doing this, but because me and my sister are very financially stable with our own properties, and our mum passed away, we want him to have a bigger budget to live in his "last" house comfortably. We don't care that they're essentially going to take away about £100k of inheritance.

My dad's illustration - his house is locked in to sell to developers for £300k. He is looking for a standard construction house on the open market with a budget of £355k, where the £55k is coming from Homewise.

Homewise will get 50% of the future sale value of the property in the event of his death or a move into care (they would force a sale). 

Let's say in 2045, the house sells for £400,000. Homewise gets £200,000 and we (inheritants) get £200,000 vs if he had bought a house for his original £300k, which would be pokier in a worse area.

So for us, it's more important dad gets a little boost up to have a nicer house in a nicer area!

Also, Homewise offered him a £430,000 budget if he leaves nothing to us -- so if Homewise gets 100% of the future sale value, which he thought was outrageous and has refused.

How is Homewise only taking £100k of inheritance in your example? Given your example of a £355k house selling for £400k, that's a 12.7% increase. If the £300k house had also increased by 12.7% then it would be a sale price of £388k.

So, for the £300k house, you'd get £388k inheritance. 

But, for the £355k house, you'd get £200k inheritance. 

Hence, buying with Homewise has reduced your inheritance by £188k.