Has anyone left a housing association rental to buy a house after divorce in their late fifties, and what are the pros and cons?

[Babapapathepinkone]

I am off work but hope to return to employment(will need to find another job) after hospital treatment in the next year.Currently wholly reliant on benefits.Negligible DB pension (under £3000pa), will have full State Pension at 67.
Had planned to save any cash settlement towards house deposit and work like a dog in order to eventually get a mortgage in my 60s.
But if a large enough cash settlement happens, may be able to buy outright, or at least have a huge deposit.
The past few years have been awful, and I worry that my desire for a home of my own for me and my late teens children to live in may not be prudent, as we live in a HA rental.
Has anyone else been in t his situation? Any advice gratefully received. I'm in limbo until form E is done, so really don't know what the marital assets on ExH's side will be.Except a very good pension which, if shared, would provide a cash flow in retirement which would increase chances of getting, for example, a 10-15 year mortgage.

and obviously any cash settlement, if large enough, would make me ineligible for UC.

What's the housing association house like? Are you happy there, is it nice, does it suit your needs?

We are very lucky to have it, and we could stay here -but it doesn't fully meet my health and mobility needs-we were number 1 Band A for a property which did, but were told it couldn't be offered as an internal transfer had priority.I had to accept where we are as I couldn't continue in the previous private rental (fleeing DV so had to live there 2 years before the HA offered where we are now.)

At least if you’re renting then UC would help with rent if on sick. I guess depends if health issue is a permanent issue.

I would buy if I could

You haven't been in it long so rent won't be ridiculously cheap. Long term thinking will your children move out one day? If so you may have to pay bedroom tax later down the line.
If you get a large lump sum and means payment will be lower than current rent, Id buy.

Thank you for your comments-bedroom tax will be an issue in the not too distant future as children start uni then move away after graduation.Part of the security of owning my own home is to have somewhere the children can always come home to if needed.If I stay in HA then at some point I will downsize to a 1 or possibly maximum 2 bed and I won't be able to provide this.I also don't know yet what job I will be able to do when I have recovered, there is no way of knowing until next year, and everything hinges on finding a job with a high enough salary that I can do until my late sixties and beyond! I'm trying to save what I can now, and hoping that when I come off UC I can then save more...

Your issue is going to be finding a bank that will give a mortgage to someone in their 50s. I would investigate if that is feasible first.

I was in a private rental not HA, so not exactly the same situation, but I bought a tiny house earlier this year in similar circumstances. I'm late 50s and self-employed, so not an obvious candidate for a mortgage. I also had some credit history problems because I was in a financially abusive relationship before I left. I went through a broker and was very honest about my situation. I got a 17-year mortgage but if I overpay regularly, it will work out at about 12. I wanted the security of owning my own home and knowing the rug couldn't be pulled from under my feet as long as I can continue to earn, and also the freedom to do what I want with my house.

I won't lie, it's been very tough financially, especially as my health is quite bad too, which doesn't mix well with self-employment, and I also had to move to a completely different area to afford a home, which has brought some challenges, but personally I've no regrets. Life in general is a right mess at the moment, but my home - which is also a right mess in a fixer-upper kind of way - is just about the one good thing I have going for me. Happy to answer any questions if it will help you decide what to do.

Not if you immediately pay it into a pension it won't. Check first though in case the rules have changed.

I would keep the HA house and use the lump sum to provide an income for me in my old age. That way, you wont be responsible for repairs which can be quite stressful to deal with in my experience.

I’m 58 - have just bought a house and got a mortgage again after a messy divorce. £130k on a 10 year term. I had a decent amount of equity from the marital house sale which really made things possible. Age hasn’t been a huge barrier, I went through a mortgage broker and was pleasantly surprised at the amount of options I had re: lenders. I did have to sign a legal document stating that I would have to work past retirement age to fund the payments however this was my plan anyway.

It’s a big commitment at my age (and will eat up a large chunk of my salary.. careful budgeting needed) but there is no way I could live in rentals for the rest of my life. The knowledge that the rug could so easily + quickly be pulled out from under your feet is very unsettling. The house will either be passed down to my DD or if necessary can help to fund any care for me when I’m older. Renting is just throwing money away.

I think with UC that lump sums from the sale of a home (assuming, perhaps wrongly, that's where the settlement is coming from) would fall under the capital disregard rules for 6 months, the assumption being that the capital will then go towards a new home. But your HA rental may change that so you should check with someone who actually knows the up-to-date rules for your specific situation.

Thank you, lots to mull over.
@BarbaricYawp @Cappuccino5 I don't believe there will be any capital disregard as there is no equity, our previous home was rented from family.Potantially his inheritance could be "invaded" as the marital assets are insufficient-I have children 100%, no maintenance.
Once I know what the marital assets will be, I can start to weigh up my options.
I suppose my main areas of decision are whether to stay in HA until youngest finishes A levels (or even university) and hope to have found a job and saved and be considered mortgage worthy
Don't imagine a judge would award enough money to buy outright
Depending on value of his pension, may be better off asking for cash sum and pension sharing (on t he grounds the pensiion would be an income in retirement that would form part of a mortgage affordability assessment)
Not convinced want to stay here long-term but difficult decision because children may want to as young adults after uni etc, and feels like a huge decision as I need to consider them but there's nothing here for me, really (other than cheap property prices and familiarity)
Also how on earth to choose! Stay in the same county, move anywhere in the UK? Near the sea but dirt cheap! Considering a flat with an enclosed balcony, but really want a little house with a private garden.What was moving away like? And did you move somewhere familiar or with some contacts, or was it to a completely unfamiliar area, simply based on property prices?
The other decision, once I know about assets etc, is whether to retrain, which was my dream-would give me increased income availability which is good for all the obvious reasons, and would also allow me to earn well past retirement age.And also open up more affordable locations and better choice of employment.
On the other hand, spending around £10k that would otherwise have gone towars a deposit may be short sighted!
Oh well, back to ruminating on Rightmove 😝