Flat or scheme

[bergclimber34]

If you were trying to get on the ladder at age 54, so a short term mortgage

Would you go low end flat all in or shred ownership, are there other options?

Is it worth waiting until +55s options I see at times? How do they work? Are they cheaper?

Any views welcome, I

[OutInTheShed]

'shred ownership' I like that!

Hard to generalise. Some people mid 50s have plenty of working life ahead, others are unemployable and burned out.
Last few years, I've met a lot of people with mortgage debt in their late 60s. Various things work for different people.

[megaphone]

Is this just for you to have a home? Or are you looking at leaving a legacy for children/family?

Personally I would always want to 'own' any home I was paying for, I wouldn't want to be beholden to others who usually have things in their favour.

Even a leasehold flat can have issues, so go in with your eyes open and check all the details, small print, regs, rules .

Over 55/60s retirement properties look good on paper, usually cheaper BUT, you are often not really the owner, ongoing service charges are often high and selling them on can be very difficult.

Probably biggest question is what can you afford? How long are you going to keep working? Pensions?

[scot_aln]

megaphone said:

Over 55/60s retirement properties look good on paper, usually cheaper BUT, you are often not really the owner, ongoing service charges are often high and selling them on can be very difficult.

Yes, some/many of these can only be sold via the original developer so they have you very much over a barrel.

[bergclimber34]

I am 54, never owned, used to contract so mortgages were less than ideal, settled into renting, but to own now its nesrly all bloody flats with ridiculous service charges that can escalate so budgeting bceimes more tricky later in life.

In theory 15 year mortgage, lower end my area is 95 to 130k all flats, no houses, i could push the mortgage more for more to borrow but not sure I want that at 69 or something.


I do have 170k in a pension investment from a parent house sale, dont want to break into that but may have to either overall buy or for a bigger deposit.

Just seems at this level houses are not an option, which is always what put me off, with tue charges and lack of regulation around it

[Simpo Two]

bergclimber34 said:

I do have 170k in a pension investment from a parent house sale, dont want to break into that but may have to either overall buy or for a bigger deposit.

If it's a SIPP you can take 25% tax free at 55. That would ease the burden a bit (though of course that money is not then growing - but then again it would be in a property so still 'invested')

[OutInTheShed]

I'd suggest talking to a mortgage broker or two. Sarni?
You might get a mortgage using the pension pot as security, but pay it back over time.
Once upon a time I had a flexible offset mortgage on a similar basis.

Thing is, inflation will dent the debt over the next ten years, you may then accelerate the payback, or just accept living and dying with a mortgage.
People do these sorts of things these days, it's OK to have less than 100% equity in your house when you're retired.

As for 'no affordable houses' in 'your area', maybe you need to consider being flexible about areas?

[megaphone]

scot_aln said:

megaphone said:

Over 55/60s retirement properties look good on paper, usually cheaper BUT, you are often not really the owner, ongoing service charges are often high and selling them on can be very difficult.

Yes, some/many of these can only be sold via the original developer so they have you very much over a barrel.

That's if you can sell them at all, a friend has had one sitting empty for 18 months, no offers, the price has dropped from £250k to £150k, still no interest.

[megaphone]

At 55 you could take a chunk of the pension and put it towards a home. It has tax issues so speak to someone first. Then you still have plenty of time to build up some savings/investments for retirement.