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convince me this isnt a daft idea

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Beatle_Ray
Beatle_Ray Posts: 198 Forumite
First Post First Anniversary Combo Breaker
in House buying, renting & selling
Hello,

Background: Married 25 years, me 55, DW 51, all debt cleared, no children but one dog, one parrot and two horses, dog and parrot live with us and horses on rented land at very low cost, house value £400K and owing on mortgage £127K, I'm about to be made redundant at the end of this month and the DW has a small income but not sufficient to cover all our costs so was thinking with no one to leave the house to when we're both gone why are we knackering ourselves to pay the mortgage each month, why not sell the house and live in rented occomdation, if we found somewhere for a max of £1000 the £275K without any interest would last 23 years almost making me 78 and the wife 75 if we make it that far, is that just plain daft, I do have a pension with about £85K in it
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  • theartfullodger
    theartfullodger Posts: 14,601 Forumite
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    edited 9 March 2018 at 3:59PM
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    Beatle_Ray wrote: »
    Hello,

    Background: Married 25 years, me 55, DW 51, all debt cleared, no children but one dog, one parrot and two horses, dog and parrot live with us and horses on rented land at very low cost, house value £400K and owing on mortgage £127K, ...
    - so you are £127k in debt, not zero debt....

    Do you understand this minor financial point, please?

    Do you realise the rent will almost certainly go up - so less than 23 years?

    Do you realise the landlord can evict you, for no reason at all, with 2 months notice?
  • Comms69
    Comms69 Posts: 14,229 Forumite
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    What about ongoing costs?


    You seem to have no savings to speak of. Your income currently is what, around £30-40,000?


    So actually that money would not last you very long.
  • whatdoyouthink...
    whatdoyouthink... Posts: 125 Forumite
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    get another job, enjoy the money you'd get from the house sale instead of dwindling it all away on rent...
  • bouicca21
    bouicca21 Posts: 6,514 Forumite
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    Why not just buy in a cheaper part of the country?

    I had to rent for nearly 3 years. Dodgy landlord, no repairs, no security of tenure, never again.
  • need_an_answer
    need_an_answer Posts: 2,812 Forumite
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    edited 9 March 2018 at 4:10PM
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    Downsize or move to a cheaper property where you could lose the mortgage.

    Personally I wouldn't jump off the owner occupier property to go to rented,there are too many things that are then not in your control but in the control of the LL.

    Saying my bit as a home owner but also a LL of several properties!

    without appearing to cross threads,theres one today about the son who's parents are mid 80's and in rented,presumably they expected to live out their life in the place they have called home for many years anly to now find that their LL is now selling up.

    Not an easy one to deal with and probably very unsettling for all involved but it jus goes to show that whilst you may have funds to cover rental payments into old age,as tenants your rights and ability to stay somewhere are always controlled or at least influenced by someone else who is there for their gain rather than taking the emotional route.
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  • Amanda_Cm
    Amanda_Cm Posts: 168 Forumite
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    Downsize or buy in cheaper part of the country and pay off your mortgage. That's the best you can do and live happily when you get old.
  • ProDave
    ProDave Posts: 3,722 Forumite
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    If you are thinking of retiring early, there is no need to stay somewhere expensive.

    Sell up, clear the mortgage, move somewhere substantially cheaper and have a house with no mortgage for the rest of your lives.
  • ACG
    ACG Posts: 23,727 Forumite
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    You could do something called equity release in 4 years (when your wife is 55.

    That just means you take out a loan secured against your home that only gets repaid when you pass away or go in to a home.

    It does not necessarily need to be your current home, you can move to another and downsize if you wish.

    I do not do equity release Mortgages personally (although I do know a man who can), but it just means you never need to be worried about being evicted because a landlord wants to sell up or rising rent etc. It might be worth speaking to someone about as an alternative?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • moneyistooshorttomention
    moneyistooshorttomention Posts: 17,940 Forumite
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    It is a daft idea.

    There's precious little security in the rented sector these days from what I read.

    Do you really want to go through life at the mercy of 6 month contracts/finding deposits at intervals/having landlords & ladies refuse to take you on anyway if you're on the dole, etc?
  • Mojisola
    Mojisola Posts: 35,557 Forumite
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    need_an_answer wrote: »
    Downsize or move to a cheaper property where you could lose the mortgage.

    Personally I wouldn't jump off the owner occupier property to go to rented,there are too many things that are then not in your control but in the control of the LL.

    And many landlords won’t accept pets which would be a problem.
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