Ideas/advice reqd pls......Housing going forward
Discussion
Bear with me on this a little as its not something I know much about.
MrsT7 and I have no kids or dependents.
This means we have nothing to leave behind other than scorched earth.
Current property is C.£250K and not the forever home.
We would both like something bigger and at best semi if not fully detached.
Is there a way we can work it so we can get into this kind of property and then leave the house to an invester (of sorts)
IE some kind of equity release type thing ?
Ideally - and dont laugh! we get an income whilst both still alive and once dead the investor owns the property.
Not sure if Ive worded this in financial type terms tho....
MrsT7 and I have no kids or dependents.
This means we have nothing to leave behind other than scorched earth.
Current property is C.£250K and not the forever home.
We would both like something bigger and at best semi if not fully detached.
Is there a way we can work it so we can get into this kind of property and then leave the house to an invester (of sorts)
IE some kind of equity release type thing ?
Ideally - and dont laugh! we get an income whilst both still alive and once dead the investor owns the property.
Not sure if Ive worded this in financial type terms tho....
Sarnie said:
Why would you want or need to do this?
So he can utilise the equity in the house whilst still living there without paying rent, I assume.OP - how old are you? If you're relatively young you'll get pennies if you go down the Equity Release road.
ETA - if you wanted income I suppose you could do ER and then invest that money in an annuity....
Sarnie said:
Why would you want or need to do this?
To get into a better house without wanting to leave it for someone I don't know .Both of us are mid to to late middle age and have no real pensions.
It would seem crazy ut move into a new mortgage and then die and leave it to the state.
Turn7 said:
BoRED S2upid said:
Rent. Sell up bank / invest the equity and whittle away at it over the years.
Have considered that but it seems wasteful when you compare mortgage payments over rental costs.Invest your current equity (no idea how much) and the interest contributes towards the rent. Your likely to be renting somewhere a lot nicer than you could afford to buy and there's nothing stopping you changing house and location at the drop of a hat.
Turn7 said:
Wasnt planning on leaving zero, hence my post....
More like being living in a nice house cheaply as the owner will get it to sell when we are both gone.
?
Why would the owner let you live in it cheaply? What's in it for him?More like being living in a nice house cheaply as the owner will get it to sell when we are both gone.
?
I understand what you're asking. Basically you want to use the equity in your current house to offset part (or all) of the rental payment of a bigger / better house. For example let's say you currently have £100k equity in your current house. You want to use this to buy a share of a bigger house (let's say one that costs £300k) Then, when you and your partner die, the owner of the house gets your share of the equity.
The problem is that there's a risk for the person who owns the rest of the house. He doesn't know how long you and your partner will live for. He doesn't know if somebody else will come along and claim your share of the equity. Basically he's got £200k tied up in an asset that isn't producing any income and which you might not be maintaining. At the end of the day it depends on the risk vs the reward for the other guy.
You basically want to rent but below market levels.
Turn7 said:
Wasnt planning on leaving zero, hence my post....
More like being living in a nice house cheaply as the owner will get it to sell when we are both gone.
If that makes sense ?
My posts are just an example of how you could achieve what you want. The way your suggesting IMO doesn't exist and isn't going to happen the way you want. More like being living in a nice house cheaply as the owner will get it to sell when we are both gone.
If that makes sense ?
Turn7 said:
IE some kind of equity release type thing ?
Home Reversion is the phrase to search for e.g.http://www.which.co.uk/money/pensions-and-retireme...
rotarymazda said:
Turn7 said:
IE some kind of equity release type thing ?
Home Reversion is the phrase to search for e.g.http://www.which.co.uk/money/pensions-and-retireme...
Exactly my thinking, thanks.....
Do your sums. These companies don't exist for the fun of it. They make a lot of money out of it so you may well be better off renting as stated above. If you were to invest your money and live off the returns and use that for the rent you may be able to get into a position where your initial investment is not decreasing. Just because you don't want to rent does not mean its not the best option financially.
For a major life decision like this I would try and keep it as business like as possible and I would not let personal opinions get in your way over something that could in the long run cost you serious money.
For a major life decision like this I would try and keep it as business like as possible and I would not let personal opinions get in your way over something that could in the long run cost you serious money.
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