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  • FIRST POST
    • marmitemum
    • By marmitemum 14th May 18, 12:36 AM
    • 62Posts
    • 12Thanks
    marmitemum
    Mortgage when semi retired?
    • #1
    • 14th May 18, 12:36 AM
    Mortgage when semi retired? 14th May 18 at 12:36 AM
    My husband is 62 and I am 58. We paid off our mortgage about 15 years ago. My husbandís on a pension of £2,500 per month. We also have a lump sum of £100,000. I work very part time.. our daughter has just got married and currently renting. We were wondering if it would be an option for us to buy a property for them to live in and then later buy from us. Can you get a mortgage at our age? If so, how much would we be likely to be able to borrow?
Page 1
    • anselld
    • By anselld 14th May 18, 7:27 AM
    • 5,961 Posts
    • 5,693 Thanks
    anselld
    • #2
    • 14th May 18, 7:27 AM
    • #2
    • 14th May 18, 7:27 AM
    Regardless of mortgage, this is a very inefficient way to proceed. Second home SDLT when you buy. SDLT, CGT and fees again when you sell to them in future.

    It would be better to gift them some money towards a deposit, assuming they even want to buy (it is not right for everyone depending on circumstance).
    • marmitemum
    • By marmitemum 14th May 18, 9:50 AM
    • 62 Posts
    • 12 Thanks
    marmitemum
    • #3
    • 14th May 18, 9:50 AM
    • #3
    • 14th May 18, 9:50 AM
    They want to buy, and already have a LISA each (just received first year interest payment). However:
    1. They are currently renting (till July)
    2. My son in law is in a training position till September and only on £10k till then (£24k after that in a new job 20 miles away, so the intention is to move to that area).
    3. Property is expensive round here and, even with their LISA money, before September they would not be able to afford anything other than a tiny studio flat. Studio flats here are around £100k, then for a small flat prices then leap to close to £200k, and for a small terraced house £220-£250k. I am not sure a lender would even consider them for a mortgage then till he has in the job for a few months - am I correct? (I would love to be mistaken!)
    4. Without buying, they will either have to continue to rent from July in their current location (£900 p.m.) or rent in their new location. To us, rent is money down the drain. So whichever way we look at it, either they or we are going to waste some money. Just trying to get our heads round which way will lose least money.
    Last edited by marmitemum; 14-05-2018 at 9:52 AM. Reason: Typos
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