Sister is sticking her head in the sand

[ednclouda]

AIBU I have come to a cross roads with my older DS she is 65 divorced for 30 years she is due to be made homeless as her ex wants the proceeds from the house he's been paying mortg for 30 years she has a few savings a tiny pension and a few caring jobs no collateral no way on earth to raise a mortg local authority waiting list is 5 years long

myself and dh have tried to advise her in what to do (were not experts) as her kids have almost washed their hands of her she is nearly at the panicking stage but not quite yet

there is no money for solicitors C.A.B
waiting list is 6 months long as well I can't see her out on the streets but what is her next move

I am worried sick

With £80k there's plenty of places she can buy a small house or flat in a reasonable area outright, or if she's 65 she should have state pension income if nothing else. What ties does she have to the area and can she move elsewhere?

Can she get a small mortgage (£15-30k over 15 years - talk to a broker, some lenders do go up to age 80) to top it up?

Depends on what her actual income is - people's definition of 'tiny' pensions and 'small' savings vary. Also, she might be entitled to top ups - has she done a benefit check?

Shared ownership could be an option - buy >50% share in 1 bed flat and will get housing benefit to help with the rental part?

She should consider a shared ownership scheme if theres one near you. Or possibly a static caravan as her home if there's a park near where you are. Preferable one that allows you to stay 12 months of the year.

If she is going to come out with £80k she is hardly up shit creek - she just needs to rent somewhere initially - as a PP said - take a 6 month tenancy - then decide on the future.

Brah, I know I know she is all that and more I just dont know what to advise her to do

She needs to get proper legal advice. If she did not get a financial settlement at the time of the divorce she can still apply (provided she hasn’t remarried) and get reasonable financial provision. She may well be entitled to legal aid (repayable from settlement). She may be entitled to more than half or to remain in the home.

Lauder, this is great ….. exactly what details are needed I will pass this on will keep all posted on the situation thank you thank you

I don't see enough detail here to say he's been a gentleman or that wanting a share of his pension is greedy.

Presumably mortgage payments were in lieu of maintenance. Was he able to get another mortgage or has he been renting 30 years? Did she do the bulk of the childcare in the family while he built up a career. Etc. These are the things which I would see as relevant to a financial settlement.

I'm not sure where you start 30 years after divorce though!!! She needs to speak to a solicitor.

Brah, I know I know she is all that and more I just dont know what to advise her to do
If you feel like that about her I'm not sure you are best to advise her? And she has options, plenty of people retire with less, not ideal perhaps, but panicking her doesn't seem sensible.

I can understand why she couldn't buy anything for £80k. A studio flat around here would cost £250k (no, not London)

However, why does she need CAB/Shelter? With £80k surely she just rents?

Why all the hysteria?

In my area you can move into sheltered accommodation even if you have the proceeds of a house from the age of 60.

There are lots of nice places including ones that have bungalows that are 'attached' to sheltered but are not within a scheme.

This might be worth looking into as it's cheaper rent and much easier to get into than general local authority housing.

you don't need to advise her or panic.

she needs to take some responsibility - she's had 30 years to figure out her next steps! Shelter, CAB, googling online.

i presume she's of sound mental capacity and has no vulnerable needs - in which case your sister needs to sort herself out and become an independant adult.

I'd imagine her two options are to buy somewhere - in a cheap area, shared ownership, retirement community, see if any chance of a small mortgage if she ups her work - or rent from the 80k, and claim housing benefit when her savings are diminished.

Plenty of older people rent and I'm not understanding the panic.

A studio costing £250k where you are is irrelevant, blue.

Here she could get a nice retirement 1 bed flat, city centre studio or a 1 or 2 bed terrace in a nice enough area (not the prime expensive side of the city but not the ghetto either).

But she is not here or where you are, but obviously she does need to live somewhere, so it's obviously worth thinking about what £80k will buy where she is. If it was a family house that was sold, chances are that the £80k will buy a small property outright.

Barbara what I am getting at is that there is a huge variation in property prices and posters should appreciate that £80k might not be enough. I doubt the OPs sister wants to move to a totally different region just so she can buy.

She may well be where you or I are!!! We just don't have that info

There's a help-to-buy scheme for older people called OPSO. I know nothing about it but it could be worth seeing if it might be suitable for her.

Sister might not want to move, but she might have to. She needs to go to see Citizen's advice, talk to shelter, maybe Age Concern. Get some proper advice.

If she's getting 80k she isn't going to be out on the street. She either uses her 80k to buy outright in one of the many areas where that will get you a one bed flat, some of which are in the Midlands, or she uses it to privately rent. She may not fancy either of these but she does at least have options and she's going to have a roof.

I thought you were going to say she would only have a grand or two to her name.
Over 61,000 properties in England alone for £80K or less on this site.

www.newsnow.co.uk/classifieds/houses-flats-for-sale/england?ad__price_to=80000

If she bought something with 2 beds she could have a lodger, and the income from that.

blue Well if a house has sold for £160k, assuming they've split the proceeds 50/50, she's not in an area where studios cost £250k is she .

If she's getting 80k she isn't going to be out on the street. She either uses her 80k to buy outright in one of the many areas where that will get you a one bed flat, some of which are in the Midlands, or she uses it to privately rent. She may not fancy either of these but she does at least have options and she's going to have a roof

^^ This. Obviously the sister needs to wake up and get some decent advice from an organisation who can look at how much money she actually has, and her income and advise accordingly. With £80k+ in the bank, she won't be entitled to housing benefit, so it is probably worth looking at buying if at all possible.

Sorry for being nosey but exactly which area are we talking about? 80K can honestly buy something outright.

Without knowing the actual financial situation it is difficult to make suggestions - the OP appears to be guessing her sister will receive around £80,000. There is a possibility the mortgage was interest only in which case there will be much less money available.

She's not going to made homeless, and she's had fair warning.

She'll have money in the bank to accomodate herself.

Why are you still enabling her to be so irresponsible?

OP is the £160k the whole value of the house or is it an equity balance? Was the mortgage interest only?

Even if it is a £160k house (could be small 2 bed) that doesn't mean she can get a flat for £80k does it? I am assuming from your panic that she cannot. From the way you describe her work situation she may not be able to get a mortgage either.

I think she should just rent. Is there a reason why you are so alarmed about this? Surely she takes her money, rents, and enjoys life?