To think my parents are making a mistake?

[FizzyCherry]

My parents are both of retirement age, Mum is 69, Dad is 72.
Due to various reasons they didn’t get a mortgage until 20 years ago and both still work to pay it off, but they have at least 7 years left on it.

They have decided they want to retire, sell the house and buy a static home at a holiday park. They’re convinced it’s their ideal solution.

I totally understand their logic but I can’t help feeling they are being lured into a situation they will end up regretting.

If they sell the house, they can clear the mortgage and buy a static home outright with money left over.

However, they still have to pay the equivalent of 2/3 of their mortgage in ground rent and various other fees.
The park has swimming pool, gym etc, they are “free to use” - but that’s another £120 a month membership (!)
They must vacate their home for the whole of February every year so the site residents can avoid council tax.
Plus a friend of theirs lived somewhere similar that the owner decided to sell to developers. They were given £45,000 to “buy somewhere new”, after having lived there 10 years. They only owned the home, not the land, so that actually wasn’t a bad offer, but obviously nowhere near enough to start again.
So although they won’t have a mortgage, their outgoings will still be quite high, and they won’t have the same income, and they will need at least one car because this place is in the middle of nowhere. Plus at the end of the day, they will have nothing to show for it.

I have visited and it’s nice, but I think they are so attracted to the idea of living on a holiday park they are not seeing the full picture.

In addition, it’s in the countryside, where my mum has always insisted she could never live.

I asked if they would even consider this village if they were looking at houses, they said not for a second.

I fully support them in needing to make a move (and the house they’re in they only bought when I was 20, I only lived there 2 years so there’s no childhood sentiments involved).
Nor is this about inheritance before anyone says anything.
Although we’re not well off now, my husband stands to inherit quite well and my parents have never had much, plus have several kids, so it’s never been something we really think about,

But AIBU to be wary of this solution? Their current house is five minutes from mine and they are convinced that I’m trying to put them off because it’s convenient for babysitting etc but I genuinely am not remotely thinking about me or my needs, I’m an adult who can sort my own life.

I haven’t told them this but my husband and I have been trying to work out a way to help my parents pay the mortgage off but we’re just not in that position right now.
Nor can we offer them a spare room for February every year, we don’t have one. Nor do my siblings (one does but he lives abroad and my parents don’t like flying so he comes here for visits).

I suppose what I’m looking for is reassurance that I am BU, or at least more experiences of why I’m not.

I have suggested they look at retirement flats etc, my mum thinks they are for “old people”.

They like their house and would stay if they could afford it.

WWYD?

Was going to add have they thought about how much use they would get out of the swimming pool (I presume it is an outdoor one)

I don't agree that this is a MYOB, let them make their own mistakes situation. Not least because if they do end up too infirm for the accommodation to be suitable, and needing frequent ambulances but not paying the CT to entitle them, the issue is likely to affect you.

They're being sensible in looking at other options given that working into their 70s to pay off the mortgage isn't ideal. But that doesn't mean this individual idea is a good one.

They can't live in it, unless its purpose built and licences for residential use, which theirs isn't. So its a stupid plan.

I've got a few relatives that live on retirement complexes in static Caravan Homes. They are dotted around the country and are in a semi rural setting. The community that they live in is fabulous. They really look out for each other. Their homes and it's value is protected.

If it was one of them. I'd say go for it. I'd plan to move to one, some are over 50, but my DD with LDs lives with me.

I agree with going through the pros and cons and then hopefully they'll look for a compromise.

Living on a "holiday" park is definitely not adviseable, and you're right to be concerned.

But as pps have pointed out there are units of static caravans people live in all year round which have good communities and are very cost effective. Nudging them towards one of those instead (assuming they have enough equity in their current house to buy outright) could be a good way of saying "YES BUT" which people always receive better than "FUCK NO".

Omg YANBU!
What I would suggest to them:

• They let out their house and rent a static home for some months or a year.
• You arrange for them to view some cheaper properties they could afford to buy.

I would be stomping my feet and getting the council of my siblings if my parents decided to do this, much as I understand the burden of a mortgage at old age.

You're right to be concerned - for their welfare longer term. Keep talking to them.

Many older people want to move closer to services and town centres, so they can easily walk to places and aren't dependent on others for lifts, or on scant public transport, if and when they can no longer, or no longer wish to drive themselves - which could happen suddenly and unexpectedly, with an accident or medical issue. Making themselves dependent on driving is not sensible.

Some retirement flats look great. Independently owned, in convenient locations, with some level of service provision in the building. Quite desirable, regardless of their 'retirement' status.

In a caravan, they won't be able to get away from each other, or have separate friends round. They'll be completely on top of each other, all the time (except when one takes the car, leaving the other stranded, unless they run two). If they're used to working, so being out a lot of the time and interacting with other people, even being in the house more, together, can be quite an adjustment. Never mind a one room caravan!

I've just looked at a link posted.

The best part of quarter of a million for a caravan?

YAtotallyNBU and I understand your concerns. There were a lot of scandals a few years back with static caravan owners forced to pay ridiculous site fees, vulnerable to paying high prices for new statics they did not want and generally at the mercy of site owners, some of whom were exploiting the situation. Yes of course they are grown ups and it is up to them, but you care about them and I’d be trying to convince my parents not to do this as well. It may be worth looking for mortgage companies who will offer loans to retired people (some will but not sure if this goes beyond 70), or, if downsizing it is, looking at flats rather than houses. Good luck OP and hope all goes well

I think I would write down my concerns and ask them to consider the list. These conversations are difficult and it can help to let them consider your points in their own time.
They let out their house and rent a static home for some months or a year.
You arrange for them to view some cheaper properties they could afford to buy.
The first of these for definite - they're not going to take in what you say because they don't want to hear it. But seeing it in black & white might hit home more.
And consider the other two - definitely don't sell up & move into a static. Either try it with the option of moving back home if it doesn't work, or buy something smaller but permanent.

If they like their house, can't they do one of those deals where they part-sell it in advance?

I know a couple who did this. They sold their mortgage free house which gave them a chunk of cash so they could go on holidays etc. But they didn't realise how much the ground rent would be so went through their cash much quicker than they thought they would. After 3 years they sold up and their children ended up buying them a flat as they couldn't afford to buy themselves. They lost about £50k in the process. So no, if I was the OP I wouldn't mind my own business.

I've just looked at a link posted. The best part of quarter of a million for a caravan?

I imagine that's a location issue - as with all property prices you're largely paying for where the building is situated.

I checked Rightmove here and the park homes are generally 40-50% of the price of an equivalent flat or bungalow, and crucially there are never any bungalows or ground floor flats for sale.

When our family outgrew our ground floor flat we sold it to downsizers who were delighted to have "less ceiling to heat" (8ft height rather than 12" in the nice period house they left) and level walking routes to the doctor/dentist/shop/hairdressers /pub. But those flats are like hen's teeth and too often marketed to young professionals!

Minding your own business really isn't an option when you know you're going to end up picking up the pieces when it all goes tits up.

Or could they get a lodger to part-cover the mortgage?

Or rent out their house, travel or live in holiday parks for a bit, then decide?

Possibly even do this for the 7 years left on their mortgage, if they're lucky enough to remain in good health for that time. Then they can either move back in, or sell and downsize to something that suits them better at that time.

A plus of letting out their house is they'd have to de-clutter now, while they're healthy and capable. Then they'd be in a great position to downsize easily, when they want to.

"I imagine that's a location issue"

Yes, true.

"I checked Rightmove here and the park homes are generally 40-50% of the price of an equivalent flat or bungalow, "

You'd hope to be able to sell a house for a flat & have some leftove, wouldn't you?

Retirement properties can have a premium also I think.

I think you are right to be very concerned and to want to advise them. Perhaps you could sit down with them and go through all the figures, their income and outgoings now and similar in the holiday park home - also including the hotel/holiday cottage and meal bill for February. If they are absolutely set on the idea could they trying renting a home on the park for a month to see what it is really like? Have they considered a future where neither can drive?
I'm surprised at posters saying 'it's up to them', without considering the longer term implications of elderly parents who may eventually need support from DCs.

Yanbu.
I would be very concerned and suggesting as many alternatives as possible.
I think it is your business to at least make sure they have as much information as they need to realise that it's not sensible.

They also need to check the lease terms. On the site we go to owners have to replace the caravans every 10-15 years (at full cost) so the place doesn't start looking scruffy. Ground rent goes up (higher than inflation) every year too. Statics are basically throwing your money into a big hole.

My main concern would be that they wouldn't be warm & comfortable.

my husbands mum, dad & younger brother live on a static site. They have to spend an utter fortune on gas and this winter has been shocking but they are happy. I couldn't but hey ho.

You'd hope to be able to sell a house for a flat & have some leftover, wouldn't you?

Yes, you'd hope. Though see my remarks in that post about availability.

Flats are brilliant for retirement IMHO as yes all right you have to pay a management charge but in return you don't have to rod the drains / fix the roof / mow the grass / weed the borders / replace the fascias.

I am facing a similar situation mortgage wise to your parents, but we are a bit younger - mid 50s and early 60s. We have looked at park homes as there is one not too far away from us which is really rated, its not a holiday home place though, its all retired people living in their little "units" and having a great social life, no worries about the garden etc.

Anyway we can also look at moving abroad - find that tempting but scary; taking a lifetime mortgage - would be last resort as we wanted to leave an inheritance and with LM you lose pretty much everything; getting a flat/retirement place - we're too young to think about retirement at the moment (and I am gobsmacked at the annual charges on flats!), or moving to a cheaper area - once all paid off etc we should walk away with about £250k to spend so we can get a house in a number of places, also our children are still teens so in 10 years time at least we will have an idea where they will be (maybe) - if so we might want to move near them.

So there are other options, but I can see how your parents might just literally want to walk away from everything. If they are not bothered about the area/how far away they are from you (which has other implications of course if they start needing help!) there are loads of places in the UK where you could get a house in a seaside town relatively cheaply. I think this holiday park home idea will die a death once they do the figures.

I agree with PPs. They ARE making a very serious mistake. Talk to your siblings, and try to persuade them to rent a static home for a couple of months (perhaps you can all help them with the rental).

That should put them off.

Minding your own business really isn't an option when you know you're going to end up picking up the pieces when it all goes tits up.

I'm a hardfaced bastard, and my parents and in-laws know that when I say "if you do that and it goes wrong, it's your right to have done it, and my right to say that I won't lift a finger" I absolutely mean it. Most people aren't as unwavering, and therefore are absolutely entitled to try to intervene in bad decisions.