Buy or continue renting- desperate for advice please
Sam. The first thing I would suggest is that your Mother goes to the Citizen's Advice and asks for a Benefits Check. She may be entitled to DLA (if she is disabled) or ESA (if she can't work due to ill health) or other benefits. When her capital is nearly used up, she will probably be entitled to other means tested benefits. It might also be worth checking that you are getting your entitlement as well.
I don't know your Mother's age etc but it is worth considering that when she reaches retirement age (60 for mst women but later dependeng on age) then if she has no other pension/income than her state pension, then she should be entitled to Pension Credit. If she gets this then she would also get Housing Benefit (paying the rent) and Council Tax Benefit (paying the Council Tax). If she has a mortgage then the most housing support she can get is the interest only on the first £100k of her mortgage and possibly Council Tax Benefit. So the capital repayment part of her mortgage and possibly some of the interest is exposed and might not be affordable
For someone expecting to be on low income once retired, Buying now may not be the best option.
Roger
Thu, 07/05/2009 - 17:24
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I would also suggest contacting your local Homebuy agent. www.homebuy.co.uk There are shared equity/ shared ownership schemes run by RSLs. They enable your Mum to use her equity to part buy a property and pay rent on the part which is not owned (you do not share the property with anyone, just ownership with the housing association. Your local housing advice centre should be able to advise- this may be a service through your local council.
Fri, 08/05/2009 - 17:15
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I compeltely agree about trying to get your mum some benefits. In my personal mind set I think renting is the best course of action. It may not give an asset but it also can give you an ease of mine due to the fact that if a pipe bursts or whatever you won't have to pay for it.
Wed, 10/06/2009 - 19:05
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Hello. I'm new to this forum so not quite sure of the norms.
Anyway, I will try to keep this as short as I can.
My mum had to sell her house about 4 years ago as she was not able to work due to ill health. She was not able to find anywhere else suitable and so started to rent.
She is still renting now and living off the capital she made on the sale of her house.
I (her son) live with her when I'm not away at uni as a mature student.
If she carries on renting, she will only be able to do so for another 5 years until all her money is spent and she has nothing, with nowhere to live.
However she does not have enough money to buy anywhere suitable now. We have been watching the housing market closely but the fall in prices is significantly less than what my mum is paying out in rent.
She has found a 1 bedroom flat that she can JUST afford but that doesn't give me a bedroom- which I do need and she wants to provide for me and it is far far far from ideal and it's probably not a good investment either.
What should she/we do? Carry on renting in the hope that prices will fall more rapidly? (a number of estate agents have said that things were picking up now- but they would say that right?) Or buy this place that isn't great just so she has something?
My mum is getting desperate to sort this out- as I said she is unwell and the stress of this situation is making things worse.
I really hope someone can advise.
Thankyou for reading.
Sam