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Original poster

Decisions at 49

29 replies

Campinginthehills · 27/12/2021 09:52

I'm about to turn 50, have just got divorced and have two teenagers.

I am in a house I don't much like that is in a good location but will probably be tricky to sell (overlooked and in need of work)

I have a mortgage of £70k, savings of £150k and pension (DB) of £150k.

Should I - spend £50-100k renovating this house?

Take out a bigger mortgage to renovate? Take out a bigger mortgage to move? Do bare minimum to the house I'm in and save as much as possible for my pension?

I earn £45k and expect to go up to £50k in the next couple of years.

Wwyd?

OP posts:
Sunseed · 27/12/2021 10:09

Have you asked any local estate agents for their opinion?

BookWorm45 · 27/12/2021 10:21

Stay in the current house until the teenagers are 18+. During that time, take your time over working out what is best for you, and also save money as much as you can. This minimises disruption for kids and gives you a chance to make really good decisions. Wishing you all the best.

westcountryfaithful · 27/12/2021 11:20

I think you know the answer. Make the pension your priority. Probably the boys education/ future would be my next priority.

If the house is in a good location it will sell. You only need do enough to stop it falling down around you.

And don’t forget to look after yourself! (Isn’t that the #1 priority?!)

Original poster
Campinginthehills · 27/12/2021 17:03

Thank you everyone. I am really touched by your responses, this is a big deal for me and does feel raw.

My head does say stay, but I find it hard because this house doesn't have very happy memories for me.

But you are confirming what I though really.

OP posts:
Chewbecca · 27/12/2021 18:17

I’d sell the house and let someone else do the work.

Buy a new place you love and can afford and can look after.

And put as much as you can into your pension over the next few years.

titchy · 27/12/2021 18:21

What do you mean £150k in a DB scheme - it's irrelevant how much is 'in' it if it's DB! Do you have enough years of service to pay what you need when you retire?

Or is it DC?

How much is the house worth?

How much would it be worth if you spent money on it?

How big a house do you need now and in the future?

You need to be able to answer those questions before anyone can give you meaningful advice.

Bushkin · 27/12/2021 18:35

I don’t understand the pension but- I thought you paid a fixed amount into DB and the years of service were what mattered?

Chewbecca · 27/12/2021 18:49

You do get a CETV of a DB pension, an equivalent value that can be used to value assets during divorce. What the recipient would actually receive might be, say £5kpa, index linked, from 65.

Original poster
Campinginthehills · 27/12/2021 18:53

@titchy

What do you mean £150k in a DB scheme - it's irrelevant how much is 'in' it if it's DB! Do you have enough years of service to pay what you need when you retire?

Or is it DC?

How much is the house worth?

How much would it be worth if you spent money on it?

How big a house do you need now and in the future?

You need to be able to answer those questions before anyone can give you meaningful advice.

Good questions!

I had to give half my pension away when I got divorced. That would get me c£4K a year, so I'm miles off. I'm still in a DB scheme but I think at the mo I'm on track for about £12k a year in total so not loads at all.

House worth £775 ish. It's quite small. Adding a loft would make it £850. Generally doing it up (needs new bathroom/kitchen) won't add any value but I can't stand them any more (both from 80s, falling apart).

Very extended houses go for £1.2m Bit that would mean hundreds of thousands of work.

OP posts:
titchy · 27/12/2021 19:20

So £12k a year plus around £9k a year state pension. Work out whether that gives you a standard of living you're happy with. If not it's worth seeing if it's possible to buy extra years service, or AVCs, or a further SIPP to give you the standard of living you want. You'll need to bear in mind that once you're 80 you won't be up to round the world sight seeing trips so you'll spend less! Also think about your house - will it be too big when you retire? Not practical (no downstairs shower room for example), or could you simply sell to buy smaller and use what's left to top up pension income.

Only you know those details, so get a calculator and piece of paper out! But start from the point at which you've retired and what you'll need then. Then work back to how you can achieve that to make decisions on your now.

titchy · 27/12/2021 19:24

You do have a fuck ton of equity though and are in a really great position, daunting though it may feel right now.

(Personally I'd spend some of your savings on the kitchen and bathroom and make the house as nice as it can be for you.)

gogohm · 27/12/2021 19:28

Can you see yourself in this house for the next 15-20 years once renovated if so that's a good option. If you can't then I would either move now to a long term home or do the bare minimum and moved once the kids leave. I would budget to have paid off your mortgage by 65

Original poster
Campinginthehills · 27/12/2021 20:16

@titchy

You do have a fuck ton of equity though and are in a really great position, daunting though it may feel right now.

(Personally I'd spend some of your savings on the kitchen and bathroom and make the house as nice as it can be for you.)

Thanks @titchy. This is really helpful. It's hard sometimes to see the wood for the trees.
OP posts:
Scottishgirl85 · 27/12/2021 20:29

I would move. Why spend your best years in a house you hate? Who knows what's around the corner, live for now. You have great equity so a lot to play with!

blueshoes · 27/12/2021 21:06

It is very hard to get builders and materials these days. So I'd say, if you want to sell, don't take on the stress of doing it up before selling. Let that be the buyer's problem. For a house with the value of yours, the buyers will probably prefer to put their own stamp on it anyway and would snap up one where the renovation (which they will probably unpick) is already priced in. Speak to a few estate agents and see what they think.

If you don't like the house, move. That might help to clear up your mind and give you a fresh start. You have been through a lot.

As regards the £150K savings, there is less benefit in putting post-tax income into a SIPP pension when you don't get the initial tax relief. Is the savings of £150K in cash and is it in an ISA wrapper? If not, you should speak to an IFA to put some of that into a stocks & shares ISA to make it work harder for you. That could also be your retirement funds. It does not have to be in a pension.

blueshoes · 27/12/2021 21:07

... is not already priced in.

SantaMonicaPier · 28/12/2021 09:34

I agree you're in a favourable position financially. I'd sell now and buy a house you do love, clearing the mortgage if possible, as well as getting advise on putting your savings into further pension funds

SantaMonicaPier · 28/12/2021 09:34

*advice

BeeLady15 · 28/12/2021 09:40

I think you need to take a few deep breaths and give yourself some space. Personally, I’d spend some savings on the bathrooms and kitchen and generally decorate and change things around. This can help move the bad memories from the house. If you’re happy with the location, and your kids are settled, I’d stay put for now. You can asses again in 4-5 years. You’re in a good financial position, but you’re just feeling overwhelmed at the moment. You’ve been through a lot

ivykaty44 · 28/12/2021 10:09

bear in mind that once you're 80 you won't be up to round the world sight seeing trips so you'll spend less!

tell that to my grandfather at 82! he went to Disney, on the way to Australia and NZ for the 6/7th time in his retirement, as he'd heard it was so very good... that was back in 1989. It really depends on the pensioner

I would firstly get the house valued by 3 estate agents, at £770k there could be £50k discrepancy's between valuations so id go for 3

If your memories of the house are upsetting - why would you want to stay? and why would you want to work on the house, if at the end of all that work and hassle you will still want to see.

look around at what you can afford to move to, how long will the teens be with you?

Alwayscheerful · 28/12/2021 11:59

Moving is expensive when you calculate mortgage arrangement fees, solicitors fees , stamp duty , removal costs , carpets and decorating. .
You can make new memories In your current home , redecorate to your taste , replace the bathroom update the kitchen and live the life you dream of .
Plan to move when your children leave home.

Candleabra · 28/12/2021 12:15

Do you have ties to the area? Could you have a complete change and move to a cheaper area, freeing up equity and giving you a bit of a fresh start. I wouldn’t stay in a house with unhappy memories.

Candleabra · 28/12/2021 12:17

Also building work is v expensive at the moment. I wouldn’t do any big jobs unless you plan to stay for a long time and absolutely love the house and area.

Nemorth · 29/12/2021 19:54

You are in a brilliant financial place at the moment. So much equity. Fab savings, decent income and not a bad pension coming (if you add the DB and state together).

Watch and wait I think. We're about to hit stormy weather financially. You are safe! You could pay off your mortgage with your savings if you really had to.

Honestly - I'd set a budget and spend a bit of money on the kitchen, bathroom(s) and decorating. Make it somewhere you love.

When it comes to sell, get architects drawings and planning permission (but not do the work) as selling with those things can add value to your property.

Get some IFA and look to top up your pension and perhaps get ready for DC at Uni?

Good luck.

Catcrazy83 · 29/12/2021 20:21

You only live once, I wouldn’t stay where I wasn’t happy if I had options

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