Retired parents moving home - Need some advice, please.
Discussion
Originally posted in "Homes..." as I didn't notice this section. Think it may be better suited to here.
My folks are in their mid-60s, fit/healthy and retired comfortably a few years ago. They are selling up their (owned outright) property in a rural part of the country, with a view to moving to the SE (Surrey/Hants) to be closer to family.
Given that their home is worth ~60% of the type of place they would like to live, and they aren't sitting on a massive pot of cash (pension income is very good), what options are open to them to effectively buy a property rather than waste money on rental?
Our family relationships are excellent (they are upping sticks for me!), so no need to be concerned about potential financial exposure. I'm more interested in finding the best solution.
Two things I had considered, but need more advice on (this is not my specialist subject):
1. Purchasing a property in my name (using some capital from their home sale as a deposit), and effectively renting it out to them to pay off an interest-only mortgage (odds are that the payments would be shared between us). I would be a first-time buyer, as I currently rent in London. Mortgage value to earnings would be roughly 3x, and it wouldn't be an issue for me to make the payments entirely in addition to my rent. Debatable what we do after an initial IF period, but 2-3yrs is a long time away.
2. Mortgages/Part-ownership of retirement properies, in their name solely using some of their capital as a deposit. My knowledge is limited to what I've gleaned from various sales paraphernalia (Home for Life being one I've looked into), so would appreciate experience/highlighting of any potential pitfalls.
Any advice would be hugely appreciated. Thanks!
My folks are in their mid-60s, fit/healthy and retired comfortably a few years ago. They are selling up their (owned outright) property in a rural part of the country, with a view to moving to the SE (Surrey/Hants) to be closer to family.
Given that their home is worth ~60% of the type of place they would like to live, and they aren't sitting on a massive pot of cash (pension income is very good), what options are open to them to effectively buy a property rather than waste money on rental?
Our family relationships are excellent (they are upping sticks for me!), so no need to be concerned about potential financial exposure. I'm more interested in finding the best solution.
Two things I had considered, but need more advice on (this is not my specialist subject):
1. Purchasing a property in my name (using some capital from their home sale as a deposit), and effectively renting it out to them to pay off an interest-only mortgage (odds are that the payments would be shared between us). I would be a first-time buyer, as I currently rent in London. Mortgage value to earnings would be roughly 3x, and it wouldn't be an issue for me to make the payments entirely in addition to my rent. Debatable what we do after an initial IF period, but 2-3yrs is a long time away.
2. Mortgages/Part-ownership of retirement properies, in their name solely using some of their capital as a deposit. My knowledge is limited to what I've gleaned from various sales paraphernalia (Home for Life being one I've looked into), so would appreciate experience/highlighting of any potential pitfalls.
Any advice would be hugely appreciated. Thanks!
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