Mortgage on a part of a property?

Discussion in 'General Chat' started by chump, Aug 24, 2012.

  1. chump

    chump
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    A relative of mine owns their property outright. She has worked all her life and is only 2.5 years away from retirement where she will receive state and part of her ex-husbands pension.

    Without going into a boring long story - lately she has been having a really tough time at work, is constantly over worked and bullied by the people she works with. She has been on anti-depressants for the last 6 months and to be honest I'm worried that if she has to continue working there then she might do something silly in the near future.

    Not only does she just want to leave her job but I feel that she needs to for her own health. However she is 60 and getting something else for the next 2 years or so is going to be nigh on impossible.

    The problem is she has no other money other than what is locked up in her house.

    She refuses to sell up and find somewhere smaller (although I understand this as her house is only worth about 150k and to downsize wouldn't really net her much money after everything).

    I've looked into equity release for her but in all honesty it seems like she would be giving up a HUGE chunk of her only asset for a pretty small short term chunk of money up front so I advised against this.

    I'd like to know if there are any other options she/I haven't considered?? I'm totally at a loss.

    The only other thing (and I dont know if this even exists) - is it possible for say her son to take out a mortgage on a share of her property (say 25%). She then gets the lump sump of this share from the bank and he pays off the share as a mortgage. He is 100% prepared to do this for her if it is possible.

    I'm sorry for the long thread. I rarely post on here but I know there are a lot of knowledgeable people here that might be able to help me/her out.

    Thanks :thumbsup:
     
  2. 961

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    Equity release at age 60 is not a good deal, as you say.

    But as a bystander I need to say that she owns her own property outright and is not needing to rely on anyone else to pay a loan. She should keep it that way. Her son may be willing but if, for example, his income dropped or his circumstances changed and he was no longer able or willing to pay the mortgage she might find things even worse

    Would she consider selling and renting? That's one option which would solve the current situation even though long term might remain difficult

    Remember mortgage rates are low at the moment but are not expected to remain so over the medium to long term
     
  3. chump

    chump
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    That's actually a really good suggestion and can't believe I didn't even think of it!

    I'll suggest it to her. The only problem is that her house is everything to her and I think it would be very difficult for her move (mentally). Saying that moving house or staying in a job which you HATE for the next 2.5 years. I know what I'd rather do :thumbsup:
     
  4. cornish

    cornish
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    don't see why she should sell up at all. the house is paid for so the biggest outgoing is taken care of, selling and renting is a decision that will affect the rest of her life.

    what's the sick pay like at the company she works for? if any good, go sick. tell her see management and complain or something and if they want to fire her, then there is such a thing as pension credits, then with that comes council tax benefit. she is 60, so not long till true retirement age. selling up is a big mistake in my opinion.

    my thoughs here are sometimes considered not good taste but why should she sell up and throw everything she worked all her life for away for another 2 years. sick = ssp minimum.
     
  5. chump

    chump
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    I agree with everything you say. I've tried to put things in perspective but she just cant carry on.

    The problem is that she works in a family run pet shop. She tells me that she doesn't even have a contract (despite working for them for over 10 years) which I couldn't believe. I thought you HAD to have a contract once you've worked somewhere for a certain amount of time?

    If she went sick all she'd get would be statutory sick pay which isn't enough to cover her monthly costs (£800 per month to pay bills and live). If it was me I'd take them to court for the way they treat her but in the state she's in she wouldnt even be able to handle this.
     
  6. cornish

    cornish
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    that is a high amount of outgoings for a single person without rent/mortgage to pay. she needs talk to her boss and be frank about how she feels, it is the only way to deal with feeling depressed about it. she needs to not give a damn about what she says. any doctor will sign her off with depression and pass out happy pills, but it is not the answer. like i said, go head on and get it off her chest and not worry about the sack. life is far too important for that. you work to live, not live to worry about a 'stupid' job and i don't mean that in a derogatory term.

    then everyone knows how they feel and if they 'let her go' so be it. she hasn't voluntarily left her job. she will get help. but living on pension credits is not easy street. lifestyle needs a major cutback. living on state pension isn't easy street. but she would get help with council tax and prescriptions so it is not all doom and gloom.
     
  7. swiftpete

    swiftpete
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    How can a 60 yr old woman with no mortgage need £800 a month just to survive? That doesn't make sense.
     
  8. cornish

    cornish
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    some links that may be of help for her.....

    from age uk website....

    discrimination and rights

    and if all goes wrong and she gets fired....

    claiming benefits

    not advocating just jacking in a job as that is untruthful but if things are untenable she needs a voice and needs to use it, and could find herself in the position of being fired for behavioural problems which will not result in a penalty.

    keep all the bases open, do not give up that house.
     
  9. simon ess

    simon ess
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    Agree 100% cornish :thumbsup:

    Also agree that £800 per month outgoings for someone with no mortgage or rent to pay sounds way OTT.

    Perhaps that's the first area she needs to look at.
     
  10. cornish

    cornish
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    yeah you ain't kidding! a massive downsize coming alone is rather forseeable it's amazing how the utlitities council tax and all the other treats add up (sky,virgin and internet) and the days out wherever add up!

    whatever the outcome, keeping that house is the utmost importance.
     
  11. chump

    chump
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    i agree £800 does seem a lot. I didnt want to pry too much though into what this includes. afaik she has no debt at all and only has the usual bills so I am a little confused how this adds up. I will bring it up when i speak to her to see if it was just an arbitrary figure she came up with or if she's actually sat down and totalled everything up :)
     
  12. FZR400RRSP

    FZR400RRSP
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    The OP said 'to pay bills and live'
    That needs clarification before anyone can judge.
    If its just bills, yes it does sound a lot.
    But if it's all her expenses, including food and clothes etc, then maybe not so mental.
    And no-one says a 60 year old has to live like a Hermit, maybe she enjoys nights out?
    My mother spends around £600 a month, and she barely goes out at all.
     
  13. cornish

    cornish
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    i would hazard a guess that arbitrary figure is more of a definitive figure, i can't see a pet shop employee earning £1500/m after deductions and if they are i'm in the wrong job!

    but lifes little luxuries add up, and it's surprising the cost when you sit down and break it down with a fine toothcomb!


    food is expensive, if you wish to eat like a king, i know! my food bill a month is almost £500 and i don't consider it a luxury, but if things got bad, i'd have to re-evaluate, which is what this lady in question needs to do.

    as i said, life on a pension whether it is state or pension credits, it isn't easy street. factor in the health worries the OP has, what is a life worth? killing yourself for an unhappy job? nah, never in a month of sundays. none of us know the circumstances, but you can bet your bottom dollar that if push comes to shove, and she finds herself out of work, she will survive. selling the house is a major no-no.
     

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