jj
Member of DD Central
Jolly Jammy
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Post by jj on Oct 20, 2018 12:38:22 GMT
I am starting this new thread to pose the question:- Equity release or sell & then Rent. Equity release is the lastest fade but..... If you do not have anyone to pass on your inheritance to & you want to end up dead with zero left (sad, I know), which is better ?
I personally think sell & rent as you will have some else to maintain the property.
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SteveT
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Post by SteveT on Oct 20, 2018 16:01:09 GMT
If you were to sell and then rent, how certain are you of being able to afford to continue paying rent, even if you live a lot longer than you currently expect and/or market rents rise much faster than currently projected?
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Oct 23, 2018 3:08:28 GMT
There are the new “RIO” mortgages that are effectively lifetime mortgages. FCA now allow selling the house at the end to be a valid method of repaying interest only mortgages.
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Post by mrclondon on Oct 23, 2018 12:47:48 GMT
I personally think sell & rent as you will have some else to maintain the property.
Sell & rent appears attractive for the reason you give, however the downside is that you'll never be sure you won't be kicked out at some inconvenient time (perhaps whilst in very poor health). Even if you find a property that is apparently available for "long term" rent the landlord's situation could change.
An alternative is (subject to finding a "lifetime mortgage" ) to sell and buy an apartment in a modern concrete block. A service charge will cover all exterior maintainance, and in a modern block the interior maintenance will be negligible, and the block will likely have recommended contractors for plumbing requirements etc.
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bigfoot12
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Post by bigfoot12 on Oct 23, 2018 18:01:14 GMT
however the downside is that you'll never be sure you won't be kicked out at some inconvenient time I certainly suffered that twice in quick succession a while back. Once I got back from a long trip away to find out that my 60 days notice started the day I went away, and another time I seemed to be about to renew (notice automatically given towards the end of lease) but then the landlord changed his mind and decided to sell. The other problem is that you might find it very difficult to modify things if you need to, such as a stair lift, walk in shower, ramps... and ordinary things such as shelving that suits your purpose. There is a solution to both of the above, but it is rare, that is different types of tenancy other than Assured Shorthold. Dolphin Square in Pimlico (SW1) is one such block (or it used to be), I can't remember the type of lease, but quite substantial modification were allowed, and the landlord wouldn't give notice (providing you paid rent and behaved), the tenant had to give at least 3 months notice. I think this is rare.
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