Has anyone heard of this before? Re: mortgages and housing m

[Autumnleaves06]

I’m a little bit worried about a family member. They are struggling to pay their mortgage and have been in paying interest free for years. They’re in their 60s and still have £80,000 left to pay. They were told if they couldn’t pay it by 2025 they’d have to leave.

They just spoke to me on the phone and told me that they’ve spoken to someone today who has suggested selling it to a property investor, continuing to live there on a life lease and paying the investor £500 a month.
But my family member will get around £30k or however much is decided once it’s been sold to them.

Has anyone ever heard of this? It may be that I’m not aware of it, but I’m just a bit concerned about my family member as they are quite vulnerable and live alone.

I don’t necessarily disagree. I think they are a very good option for some people and the good ones (not necessarily the expensive ones) can really be beneficial. I’m just not sure about buying one without a lot of research, as you said.

I know there is no easy answer with regards to funding but I feel quite strongly that money should not be made out of adult social care.

May I suggest, that they contact 3 estate agents & get current valuations of the property

They could sell & buy something smaller outright & pay off the money owed on the original property

If their mortgage was not paid off fully by retirement, how were they expected to pay it ?

The alternative is to get a lodger in the property & help pay the mortgage

I think the PP was warning of a situation the OP may find themselves in if they are a beneficiary in any future will dealing with the a share -owned property. The SC still needs paying and the estate/ beneficiaries have to pay that for the period until it is sold. Property may be on the market for months and months, if not years (if you happen across a not ‘nice’ HA; incidentally, charity status does NOT make a HA ‘nice’) and if OP a beneficiary, they may find themselves under pressure to pay the SC themselves whilst property is for sale. HAs may be prepared- when pressured - to leave the SC to accrue until the property is sold and the estate can then settle, but it’s not a guarantee- they want to maximise their income. The idea of getting a second sale one cheaper or a ‘bargain’ isn’t a given either- the HA needs to agree the sale price, and it’s in their interests to maintain portfolio value. These properties are simply not open to full market forces as other sales are. As a PP says, they are good for many people, so long as you go in with yours, and family members, eyes open.