Mortgage term in early 50s (solo): does £98k still feel manageable?

[51With98kLeft]

As per new username: is anyone in their early 50s, with 98k left on their mortgage (which they pay on their own)? How long is your remaining term? Does it feel manageable? There are obviously lots of variables to this, but in general?

Current mortgage almost paid off (tiny monthly payments now) and have opportunity to buy DSib's part of inherited property (one part left to me). I'd buy it for disabled DC to live in eventually. DP thinks it is too much of a commitment because of my age and that I would have to take the term right up to my retirement from a public sector role.

I wouldn't need his support (but I resent that he wants to pass up the opportunity to secure a future home for our DC because he thinks it's all just a bit too much to take on).

Just wanting a reality check.

When are you planning on retiring
How much do you earn
how much will the mortgage be per month
home much do you currently pay
what else do you need the money for

I mean if you earn minimum wage on a temporary contract- no. If you are a ceo of a multinational yes.

For starters will your children want to live together, I couldn’t think of anything worse than living with siblings all my life. It’s nkt that we don’t get on but that’s quite a big assumption.

I wouldn’t be doing this personally.

I think that's sounds doable personally.

Hard to say without knowing what £98k looks like in context of your income / assets

Well what is your income? My mortgage is £278k, I’m 51.

Depends how much you earn.

I'm assuming she only has one child who would be living there, and is being vague about their sex. But maybe not...

OP it sounds manageable to me.

That’s a tiny mortgage

That’s about ten grand a year for the next decade so yep that’s fine…

Thank you for speedy responses.
@redboxerclub
Retiring at 67.
Earning £45k.
Likely monthly mortgage repayment on prospective approx £700. Paid for by letting property out initialky ideally, until DC could take up residence.
Current mortgage payment £350 pcm, finishes 2030.

@AyeupDuck Good point about DC, which I've thought about a lot. I'm reasoning that if they decide they'd rather live elsewhere, the property can be sold and the money reinvested separately, but at least it will have been sensibly invested in the meantime.

If the property was sold now, I would look for some other way of investing my share for DC to benefit from it later. I don't need the money, but one DC will need some kind of supported living in adulthood.

Yes, deliberately vague about sex of DC. There are 2, both of whom could potentially benefit from the arrangement, but only one has a disability which will make independent living / earning sufficiently to fund accommodation challenging in the future.

Crikey that sounds ok to me as I am increasing mine to £175,000 to buy exH out. I’m 53 :/

@mizu This is what I'm trying to get a sense of. I suppose I'm regularly reading about people's financial arrangements here, I've sort of decided that, while it's not necessarily where I'd prefer to be at, at this stage of life and career, it's not an awful idea, and many would love the opportunity to buy property for their DC. I feel lucky, but DP thinks I'm being stupid and overly optimistic about my capacity to do it alone. Hardly a runner-up for most supportive partner of the year...

I am sitting with the question of how I'd feel down the line if I let this opportunity pass and let the property be sold. DC know the purchase is a possibility -would they resent it in years to come if I didn't grab the chance now? Sure, I'd have my share of the value, but it would not be enough to buy something else again; the house is unusually cheap for our area while still being a good prospect.

I’m a single parent earning 53k in NHS, with retirement at 60, mortgage is around 80k, £450 pcm - plus I have a BTL with 120k interest only mortgage. Terms to both is 67.

But I know I will inherit enough to pay both mortgages off beforehand.

@ChilledProsecco , that sounds neat. You're in a better position than me in all areas: smaller mortgage, earlier retirement and a better salary, but it does make it seem OK.

I’m 51 with a nearly £300k mortgage, paying £2k per month. As soon as my youngest DC finishes at the local school, which is a very easy walk to and from for her), I will be looking to downsize and decrease the amount owed by at least 50%. One DC at uni, the other planning to go. No idea when I’ll retire. Always thought I’d be 60 but 68 is more realistic.

I think it sounds doable and a good opportunity to acquire property for your DC.

It sounds like a fantastic opportunity for you and your children (who will need support in the future).

98k mortgage is tiny. It sounds like a great opportunity if the house is well maintained.

Spread the mortgage over the longest term possible to keep your mandatory monthly repayment down & overpay where possible.

Think carefully about becoming a LL though. The regulations are (tightly) stricter than ever and it's not a particularly stressful free cash cow. I was glad to sell mine.

Not solo admittedly, but my DH is in his mid 50s and we only got our mortgage a few years ago and still have over £200k to pay. Admittedly I am in my mid forties, so presumably that’s why the lender accepted the balance of risk - but he is the higher earner.

In conclusion: yes it’s manageable, but if you can afford to overpay now then you should.

well I’m 53 and we are about to clear our mortgage of £84k, if we hadn’t we’d have been paying till I was 64. I’m not sure I’d do this, you could just save the money and get a decent fund towards a house instead

Yes, given your circumstances I think I would go ahead. If the shit hits the fan you can sell it. Plus you will get an income from renting it out.

Have you factored in the maintenance costs of the property you’re planning on letting and having provision in case your tenants stop paying rent? And the time and energy that’s required. I guess you could outsource some of this to an agency, which of course would cost you. The new laws generally advantage tenants rather than landlords. I agree with your DP about it being too much. The responsibility and financial aspect of being a landlord combined with having a full-time job, running my own home and raising a family would be too much of a strain for me.