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  • FIRST POST
    • Beatle Ray
    • By Beatle Ray 9th Mar 18, 2:46 PM
    • 151Posts
    • 38Thanks
    Beatle Ray
    convince me this isnt a daft idea
    • #1
    • 9th Mar 18, 2:46 PM
    convince me this isnt a daft idea 9th Mar 18 at 2:46 PM
    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
Page 1
    • theartfullodger
    • By theartfullodger 9th Mar 18, 2:53 PM
    • 9,532 Posts
    • 12,789 Thanks
    theartfullodger
    • #2
    • 9th Mar 18, 2:53 PM
    • #2
    • 9th Mar 18, 2:53 PM
    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, ...
    Originally posted by Beatle Ray
    - 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?
    Last edited by theartfullodger; 09-03-2018 at 2:59 PM.
    • Comms69
    • By Comms69 9th Mar 18, 2:56 PM
    • 2,970 Posts
    • 2,938 Thanks
    Comms69
    • #3
    • 9th Mar 18, 2:56 PM
    • #3
    • 9th Mar 18, 2:56 PM
    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...
    • By whatdoyouthink... 9th Mar 18, 2:58 PM
    • 48 Posts
    • 22 Thanks
    whatdoyouthink...
    • #4
    • 9th Mar 18, 2:58 PM
    • #4
    • 9th Mar 18, 2:58 PM
    get another job, enjoy the money you'd get from the house sale instead of dwindling it all away on rent...
    • bouicca21
    • By bouicca21 9th Mar 18, 3:00 PM
    • 3,619 Posts
    • 5,416 Thanks
    bouicca21
    • #5
    • 9th Mar 18, 3:00 PM
    • #5
    • 9th Mar 18, 3:00 PM
    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
    • By need an answer 9th Mar 18, 3:05 PM
    • 422 Posts
    • 483 Thanks
    need an answer
    • #6
    • 9th Mar 18, 3:05 PM
    • #6
    • 9th Mar 18, 3:05 PM
    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.
    Last edited by need an answer; 09-03-2018 at 3:10 PM.
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    • Amanda_Cm
    • By Amanda_Cm 9th Mar 18, 3:18 PM
    • 166 Posts
    • 200 Thanks
    Amanda_Cm
    • #7
    • 9th Mar 18, 3:18 PM
    • #7
    • 9th Mar 18, 3:18 PM
    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
    • By ProDave 9th Mar 18, 3:30 PM
    • 845 Posts
    • 961 Thanks
    ProDave
    • #8
    • 9th Mar 18, 3:30 PM
    • #8
    • 9th Mar 18, 3:30 PM
    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
    • By ACG 9th Mar 18, 3:36 PM
    • 16,833 Posts
    • 8,784 Thanks
    ACG
    • #9
    • 9th Mar 18, 3:36 PM
    • #9
    • 9th Mar 18, 3:36 PM
    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
    • By moneyistooshorttomention 9th Mar 18, 3:56 PM
    • 15,611 Posts
    • 43,337 Thanks
    moneyistooshorttomention
    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?
    Like Frankie said - I did it my way.
    It's MY life......
    • Mojisola
    • By Mojisola 9th Mar 18, 4:07 PM
    • 29,245 Posts
    • 74,707 Thanks
    Mojisola
    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.
    Originally posted by need an answer
    And many landlords wont accept pets which would be a problem.
    • need an answer
    • By need an answer 9th Mar 18, 4:20 PM
    • 422 Posts
    • 483 Thanks
    need an answer
    And many landlords won!!!8217;t accept pets which would be a problem.
    Originally posted by Mojisola
    A lot depends on the type of property and location with pets,the bulk standard response is usually no pets,but actually that could be the least of the OP's concerns.

    When you start to live of off savings and get to a certain age then it's not uncommon that you start to fall in credit worthiness ability with letting agents and LL's.

    What would seem an easy monthly thing to set up a standing order for rent can quite easily become a request for up front large payments that equate to a years rent in advance simply because you fail to meet bulk standard "agent criteria"

    Although I am a LL myself and I hope a fair one to my tenants I wouldn't suggest that anyone takes up a rental if they think that all LL's possess the integrity that they do.

    I would like to think that my existing tenants will have properties for as long as they wish but I am not nave enough to realise that situations change and for example should push come to shove in my world I may need to consider selling up in order to protect my own home above a rental property.
    I have no plans to sell anything but you never know how the dice roll.
    True the OP doesn't know how their dice will roll either but I always think they will have a better chance if they throw the dice rather than someone throw it on their behalf!

    It is also very likely that rental payment increases will probably outstrip interest on the bulk of your capital so your initial estimates of 23 years worth of rent banked may be wide of the mark

    OP think carefully before you jump in on this.

    Then there is always the magnolia walls and carpet scenario together with the no picture hanging rule.
    Last edited by need an answer; 09-03-2018 at 4:38 PM.
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    • PokerPlayer111
    • By PokerPlayer111 9th Mar 18, 4:26 PM
    • 248 Posts
    • 85 Thanks
    PokerPlayer111
    Downsize and enjoy your life with spare money, work on health and fitness.
    • cloo
    • By cloo 9th Mar 18, 4:43 PM
    • 1,034 Posts
    • 1,001 Thanks
    cloo
    Yes, I'd sell up and downsize to smaller property that you can own. I would not want to be in rented when retired - with most LLs owning just one or two properties, you'll be lucky not to be moving every few years when they need to sell up.
    • Doozergirl
    • By Doozergirl 9th Mar 18, 5:08 PM
    • 25,017 Posts
    • 68,499 Thanks
    Doozergirl
    It isn't daft, it's verging on lunacy.

    I can't work out any logic in taking your equity and giving it to someone else, eventually ending in you having nothing at the most vulnerable point in your life.

    I can't even work work out what you think the benefit is. If you want to stop paying a mortgage, move house to something where you can own it outright.
    Everything that is supposed to be in heaven is already here on earth.
    • scottishblondie
    • By scottishblondie 9th Mar 18, 5:21 PM
    • 2,000 Posts
    • 1,280 Thanks
    scottishblondie
    It!!!8217;s a daft idea. Private rented has zero security and most LLs won!!!8217;t take pets. You could easily live into your 90s and run out of money. It!!!8217;s also very unlikely that your rent would stay at 1k for that entire time. If you want to be mortgage free then downsize or move to a cheaper area, but since you!!!8217;re still young I would get a new job and keep paying down your current property.
    • parking_question_chap
    • By parking_question_chap 9th Mar 18, 5:47 PM
    • 1,612 Posts
    • 1,402 Thanks
    parking_question_chap
    And what if you live to 100?

    Of course its a daft idea.
    • Smodlet
    • By Smodlet 9th Mar 18, 6:32 PM
    • 3,011 Posts
    • 6,048 Thanks
    Smodlet
    You don't say where you are in the country, OP. Depending on where you might find that, far from downsizing, you could buy somewhere with enough land for your horses as well. Ever watch Escape to the Country? Other property programmes are available.

    This is an extreme example but I once worked with someone who had sold a decent 3 bed semi somewhere in London and moved to a large, detached house with paddocks and enough room to raise horses in south Lincs. I mean very south Lincs, practically Cambs.

    The world could be your oyster, in your circumstances! Why on earth would you want to throw yourself on the mercy of private landlords? That is the last resort for most people; those who have no other choice. Try reading just a tiny fraction of the horror stories on here from tenants whose lives have been made a living hell by their LLs. I bet any one of them would give their eye teeth to be in your position. What I couldn't do with the equity you have! And I am a home owner.
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
    • societys child
    • By societys child 9th Mar 18, 8:27 PM
    • 5,197 Posts
    • 5,734 Thanks
    societys child
    So the general consensus appears to be . . .

    • PasturesNew
    • By PasturesNew 9th Mar 18, 8:35 PM
    • 62,477 Posts
    • 365,926 Thanks
    PasturesNew
    It's utterly ridiculous ... imho.

    You've more than enough cash left over after selling to buy a raft of perfectly lovely homes where you can settle, decorate and relax.... without the niggling faults of rented houses, fees, rent increases and the permanent fear that the LL will give you notice and you'll be needing 5-6k to move each time.

    Just sell, downsize ... and learn to live on the income your OH provides, or downsize a little further and top that up with a bit from your savings.

    You can't beat that feeling of "I don't have to tidy up, no agent will want an inspection" and "OMG what's this letter, I hope it's not a notice to quit as I can't face moving again".
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