Mortgage for over 80s

arganoid

We are looking to move my dad, who is in his 80s, to a new retirement home closer to family. He is currently renting but has sufficent savings that depending on the property, we might be looking at around a 50% LTV. He has regular income from a pension. My sister and I would also be looking at contributing towards this. If a mortgage is not possible due to his age, would my sister and I be able to act as guarantors, or would it be a case of us buying the property on his behalf?

Emmia

This doesn't address your question directly, however I wanted to highlight something for you to consider before plunging in.

Is this purchase for a supported living /retirement flat arrangement? You might want to be aware that if bought new (first owner), you'll take a significant financial haircut when you eventually come/need to sell it... 

These flats also not easy to sell due to the service charge costs (and restricted pool of buyers) even if they've been previously owned, so you might end up with a steep financial haircut even if you don't buy new.

There are numerous stories in the media about this, for example:
https://www.theguardian.com/money/2021/mar/28/i-cant-sell-mums-retirement-flat-and-the-charges-are-mounting-up

Flugelhorn

I have seen some new retirement places where the option is part purchase / part rent - while there can be significant problems with these properties as highlighted above , they can suit some people and renting part may be better than mortgage some figs here https://www.mccarthyandstone.co.uk/retirement-properties-for-sale/the-curlews-exmouth/

grumpy_codger

I'm no expert, but aren't lifetime mortgages designed for this? And, I think, the older the borrower is, the better for the bank - hence the minimum age (50-55).

However, a retirement home can be unsuitable for a bank because of the problems with selling it when the time comes.

MWT

grumpy_codger said:

I'm no expert, but aren't lifetime mortgages designed for this? And, I think, the older the borrower is, the better for the bank - hence the minimum age (50-55).

However, a retirement home can be unsuitable for a bank because of the problems with selling it when the time comes.

If it is a specialised retirement home that would rule out the lifetime mortgage providers, if it isn't then it is a good route to consider.

I would also suggest a degree of caution before changing from rental to a purchase given the age of the individual and the likely changes in their needs over the next few years, it isn't clear why a purchase makes sense if they have been renting happily for some time now...