Never having your own home - is housebuying out of reach?

[YoureNotGoingOutLikeThat]

I am a bit hesitant of posting as I am natually a private person and sensitive to boot. But I think I need someone to give my "head a wobble".

I am mid 50s. I rent. And I'm single. I have a DC who is an adult teenager and student. It's just me paying for bills and the options for improving my income significantly enough to buy somewhere are low. I am stuck in my own opinion that I am now too old and too poor to ever buy my own place. I'd love a two bed with parking and a garden, that I can decorate to my own taste and even perhaps have a dog. I worry that the landlord will give me notice to quit and I won't find anywhere to live. And then I worry that I won't be able to act as guarantor for DC when they move into a student rental. I worry about myself and DC becoming homeless quite a lot.

What can I practically do to get out of this catastrophising? I am cutting back and saving where I can but the odd £20 here and there seems laughable when I need 10s of thousands. How do I secure my future?

I'm a renter too. I've been evicted from 2 homes through no fault if my own. I do really get how hard it is not having the stability. I'm thinking it will be easier when my DC have moved on though as I won't have to worry about their stability, much easier to pack a bag and go off on my own if needed. I've decided against getting a mortgage as I don't think I will see much benefit to it now I'm getting older, instead I'm putting extra in my pension and in savings for my DC to go towards them getting their own home when they're young.

Depends what you want to buy. There are parts of SE London where 160-200k will get you a one bed flat. It won’t be in the best place, it won’t be big but it’ll be yours. If you need a house or larger property then part ownership is going to be your only option aside from meeting a wealthy partner. I can’t remember the name of the bank but there was a part buy part rent mortgage that was coming to market with 5% deposit from memory.

What about local charitable trusts, almshouses etc. It varies by location, but there are often private, charity type options for older people. They might not be available to you yet, but you can check to see what's around and what the criteria are. You would have secure tenure in this type of accommodation.

I'm not in your situation and thus cannot appreciate your concerns and anxiety.

The over-55 housing wouldn't seem to work if you want your DC to live with you. Here in Devon it's relatively easy to find such homes (2 bed / small garden/ allowed to keep dog, for around £165000).

I'd also consider looking at low lease flats priced accordingly - but here you'd need the cash as mortgages are hard to come by. You also couldn't factor on leaving it to your DC.

I did see this video the other day and maybe it'll help in some way.

I’m renting a council property. The stability and being able to do as you want with it is nice. However, I’m aware I will have to pay rent forever and that is a worry at times. Plus I know mine will never benefit from me selling one day to help them out onto the property ladder.

Ive been a single parent for years and only bring home £23k. My mortgage (when playing with online calculators) would be for £70k max so buying is never going to be an option.

On the positive side. I can phone up for help with property repairs. They fitted a new kitchen, heating system and rewired the property. Have painted it and replaced roofing through the years I’ve been here. I have a nice big garden and as it’s a rural property there are only 9 council houses along my road. I could never have afforded the house I’m living in to buy.

realistically unless you inherit a lump sum from the "elderly relative" you do not have enough money to meet the deposit requirements of a mortgage to own a property yourself. £40k is above average income but you have no savings so it is largely irrelevant as you cannot buy in the SE given house prices as that is not enough to fund a mortgage on a property that would be worthwhile buying (ie it would become a money pit with you in squalor)

shared ownership (with a very low share to you) is your only option if you are determined to "own" a place of your own.

A friend has just bought a shared ownership new build flat in the SE for £55,000. It's a one bedroom, but a neighbouring flat is two bedroom and on the market for not much more. This sounds your best way of buying and if you ever come into some money you can buy the rental part.

If I were you I’d keep saving and look to move out of the SE once your caring responsibilities have ended.

If you are caring for elderly relative could you be due to inherit from them when they die?

@YoureNotGoingOutLikeThat I’m assuming you weren’t a carer in 2000. That’s truly your problem isn’t it. There are properties for £120,000 but not where you want to be. You have decided to care for someone and not move. You’ve had choice but it’s far more difficult now and I don’t think you tried hard enough to buy. It’s always been possible to buy!

Do you have anything helpful to add to the discussion @OhDear111 ? Or were you bored and just felt like having a go?

OP, there's hope in the near future when it comes to pets when the Renters Rights becomes law:

https://blog.goodlord.co/renting-with-pets

• No blanket bans - The Bill allows tenants to ask landlords for permission to live with pets.
• Fair consideration required - Landlords must consider each pet request fairly, and if they refuse them, there needs to be a reasonable justification.
• Right to challenge - If tenants believe a refusal is unfair, they can appeal.

I'll give you an example of what's not reasonable:

Tenant in a 1 bed flat in the middle floor of a block wants to keep two husky dogs, tenant is away from home all day - because the dogs could be a noise nuisance to several floors and it's detrimental to large dogs to be indoors all day (depending on the breed and nature of the dog)

What would be considered reasonable:

Tenant in a 1 bed flat in the middle floor of a block wants to keep one cat, tenant is away from home all day*

Tenant in a 2 bed semi detached house with a garden or yard wants a small dog

but LL is worried about damage to their property - LL's worrying about damage to their property will no longer be seen as firm grounds to deny tenants to allow to have pets.

*it's possible that some LL's owning flats may still have grounds to refuse if the leasehold terms for the building says 'no pets' - it remains to be seen how government will handle this

Hopefully you'll be able to get a pet next year. I'm currently expecting this to become law by either the end of February or the end of May, depending on what Parliament does or does not do between the middle and end of October.

Keep an eye on The Independent Landlord (Suzanne Smith's) blog for progress updates. She's even got a newsletter so you don't have to keep looking back for updates.

Are you not able to withdraw 25% from your pension at 55?
Would that not give you a decent deposit?

I would buy now while the market is relatively low, even if you don’t move until those responsibilities end. Have everything lined up?

OP only has savings equivalent to a few months worth of expenditure. It will be ages yet before she can afford to buy anywhere, even a shared ownership property.

Jesus Christ, what’s wrong with you?

Hmmm. I wonder how you have drawn the conclusions you have based on what I have said. Life for many is far more detailed that what can be summarised into a post that focuses on a specific issue. Sometimes, "choice" is only one option.

Of course, I could say to ailing relative "sorry, can't hang about in your last months/years and care for you as you did for me". But that doesn't sit well with me.

It has not "always been possible to buy" for myself or many others. I first looked into buying a 1 bed property in 1996 but was short of the funds needed and was advised to wait by the estate agent and lender and to look again as my career progressed and my earnings increased. And prices were very inexpensive then compared to now. Lots of people struggle to buy and end up in rented. That was true in 1996 and it is very true now (the only thing we do agree on here).

Many thanks to everyone (!) who took the time to read and respond. It is really helpful to get other views.

I will be looking to get some IFA input and will hopefully, one day, not feel the unease of wondering if I will be fearing eviction in my dotage. Fingers crossed, eh!

Unfortunately you have probably missed the boat to own outright. Even if you save up for a deposit over the next few years, you'll likely only be able to borrow for a term of 10 years or so, so that will reduce the size of the mortgage you can get.

Share ownership might be feasible.

Just wanted to wish you all the good fortune in the world. Some good advice on here. Genuinely hope you find a way forward.