Would I be crazy to do this?

[Aquamarinescarf]

I was widowed 19 years ago. I'm now 63. My husband (who was quite a lot older than me) and I had managed to pay off our mortgage, so I was left with a decent-sized house that has boomed unbelievably in value.

I've enjoyed my work till recently, so I'm planning to retire in March. I'll have a company pension of around £17k pa and in three years when I'm 66 I'll get the full state pension. I also have around £10k pa from my share of my husband's pension. Even though I have some cash savings, they're not going to enable me to cover the maintenance and costs of the house for long and I want to downsize. I'm sick of the gardening and maintenance, and I feel as if I want a break from the endless responsibility to cut hedges and get the boiler serviced. I'd also really like to get rid of most of the stuff in the house. I can't really explain, I just want to start fresh and unencumbered by the past, if that makes sense.

I'm aware of the drawbacks of buying a leasehold flat in an over-55s facility. I know that service charges can go up and that when the time comes to sell there's a reduced market to sell to. But... friends who live in a nice coastal town drove me past a development near them before Christmas and I thought 'Oooh, this might be answer'.

It's an independent place, not McCarthy & Stone or similar. 2-bedroom flats there are around £125k — less than half the price that they were originally sold for 15 years ago when the property was built. I don't really see how prices can fall much lower. Ordinary non-age-restricted 2-bed flats in that area start at over £220k and can go up to £500k+. I could afford one of those if I wanted, but there wouldn't be an on-site gym, a couple of acres of garden that someone else looks after, an on-site hairdresser, restaurant, cafe and physiotherapist. (I'm joking, but only half-joking).

My fantasy is that with the house sold I could give half the proceeds to our son and grandchildren so that I know they're provided for, and have enough left to buy a little flat in this complex and very decent lump sum to invest for income over the years. The service charge and ground rent come to around £6.5kpa: council tax, heating and water rates should mean I have a little bit of change from £10k pa, which is easily covered by my various pensions.

For the first few years at least, I would hope to use it as a secure lock-up-and-leave property. I'd hope to spend much of the year away, travelling and doing all the things my husband and I talked about but never managed to do. We have friends all over the place. I could have a camper van: I get two reserved parking spots.

I've mentioned this to a couple of other people and they think I'd be better off buying a much more expensive non-age restricted flat down at the marina, which will go up in value over the years. I find the marina area very busy in the summer and I'm not sure I want to live in the thick of the tourist area. Some of those flats are AirBnBs where people come t party for the weekend. And if I spend £500k on one of those I won't be able to be as generous to my son or have so much to splash out what I hope will be years of adventures. If the worst comes to the worst and prices in the over-55 place go on dropping, it really won't matter much to my son and grandkids if after I'm dead the flat only sells for £40k.

I know I'm very fortunate to have so many options, but the problem with options is that you have to make a decision. For so many years, first in my marriage and then later busy with my son and my work, I stuck with what I knew. Now I'm moving into uncharted waters and I don't want to make a major mistake. Everyone seems to have very strong opinions of their own and most are unable to understand why after living in a larger house for some many years, I'd want to downsize to a small flat. Am I mad to contemplate this?

If I were in your shoes and I had that level of flexibility, I really would be considering the location nearer to the marina rather than the complex that you're looking at. When you do get to the age that you want to be able to walk to the shops, go for a coffee with friends/neighbours, you won't want to be in the apartment complex, you'll want to be looking at how close the marina is to everything. Yes, it's going to be busier but when you've finished touring around the place, you'll want something where people can pop in and you can also pop out. I don't think this cheaper apartment will give you that.

It is entirely a personal preference but I'd be aiming for the marina myself.

Really? You'd be happier in a busy tourist trap surrounded by AirBnBs in your retirement? The OP has already said she is struggling with the noise made by her NDN and that's in a house. Noise is compounded when in a flat. And Marinas come with bars, sometimes clubs alongside the shops and cafes so the nighttime noise could be significant.

It seems to me the OP wants a peaceful, low maintenance crash pad when she isn't travelling, which a marina development would not provide.

There are few useful shops or facilities at the marina as far as I know: a few cafes and restaurants and bars, which in the summer can be noisy. I'm someone who sleeps with a bedroom window open all year round so I'm looking for a calm environment. I can always take a cab there if I'm no longer able to drive. I'm aware that flats in the marina area and other new-build areas are very popular with Air BnB and buy-to-let investors and can have a high turnover of residents and I'd rather avoid that. If I could find a nice ordinary block that doesn't allow rentals then I'd feel more confident. Perhaps I'll ask around in estate agents when I'm in the area in a couple of weeks and see what they can come up with.

Go for it but personally I would look first if there are any second hand in similar areas. As you say price tends to drop off considerably when not new. Is it platinum skies?

Not crazy at all. We went for the class bungalow, not for health reasons, but because gardening is our thing, and you get a bigger plot. Good luck to you. I do have one relative contemplating moving now, ground floor 2 bedroom flat, purpose built block,you can hear the TV nextdoor...that would drive me crazy, however, the maintenance charge alone is now £8k bills, council tax on top.

This is in the SE UK and these flats go for around £400k

I'm totally with you about the marina by the way. To be frank if you set your family up now with cash I wouldn't care if it sold for zilch so long as you leave 2 to 3,years worth of service charges and council tax - if it's cheap enough someone will always take it effectively for the monthly cost of service charges- problem is most families don't want to sell for absolute peanuts because that 'is' their inheritance - or they need to cover off ongoing care home costs etc - had you also looked at rentals in that sector? A bit lesssecurity but again you could bank a large cash sum and the interest would help pay the rent - there then isn't an issue with ongoing charges

If you want to travel a lot, check that the lease of the retirement flat would allow for that. I have no idea as have never looked at them, but these retirement complexes strike me as the kind of places that might have restrictions in the lease about how long flats can be left empty. Hopefully I’m wrong but worth checking.

Maybe a few more things to consider:

Even if your family are willing to let the flat go for £40k after you pass on or move into care, you/they will still have to pay the service charges until it is sold and may not have the cash or inclination to do so . These flats can take a long time to sell.

You may need to pay for care - whilst your pensions will cover some of the monthly bill, care costs are huge, so you might want to hang on to more capital

As a fit and able bodied person in those flats it is easy to become relied upon by those lovely neighbours who are not now so fit- this tends to be a boiling frog situation where you help out in an emergency and then it becomes the norm. Don't become the default carer!

Check your maths on the pension and do make a free appointment with the Government Pension service Pensionwise. Eg if you have £600k left you won't need to put it all into drawdown or make yourself a higher rate taxpayer in retirement, you can do a thing called uncrystallised funds drawdown where you draw down a chunk (eg whatever takes you up to a fraction under the higher rate band) and 25% of what you draw is tax free (instead of taking the lump sum of 25%) the rest remains invested and can grow.

Thank you. I have a good financial advisor: my husband was well-insured when he died and I needed assistance deciding what to do with the proceeds. Most of it wasn't invested and was used to fund my son's education and then a deposit for his current home. If my plans do actually come to fruition he'll receive around £800k from me during my lifetime, so he'll absolutely be able to afford to sell the flat for £25k to someone who needs an affordable home, or he can pay the service charge for a couple of years.

I think that probably for the first year or two I'll enjoy splashing out. I'm naturally prudent but venturing into the 40% tax band a few times won't break the bank.

Sorry, that should read 'most of it was invested.'

We are the same age and deeply regret buying a flat. Our block does not have age restrictions, but the majority of residents are well into their retirement years. We find that they have such a different mindset, get paranoid and very controlling about trivial things, very clicky and constantly complaining and fighting over something. This communal environment creates a lot of stress and health issues for us.
We are selling our flat and going into a detached bungalow. Can't wait to regain freedom, independence and peace. Looking forward to sitting in your own garden undisturbed by the never ending smell of vapes and cigarettes from young tenants and being able to open the windows without fear of such toxic substances entering your flat.

If it’s anything like where my Nan lived, do it.
I genuinely asked once if I’d be able to live there 😅 the grounds were beautiful. It was quiet and peaceful.
They had on-site everything including yoga classes etc.
They had little reading rooms with huge armchairs with a view and a balcony, it was just stunning. Only a 5 minute bus journey into the very busy tourist area near the sea.

As a 30-something daughter myself, even I’d say be careful about giving “half” to your son.
Maybe gift him something if that’s your wish but half is too generous when you’re only early 60’s yourself and have a possible 30+ years left of your life.
Get yourself on a couple of over-50s cruises every year, travel, take up new hobbies, you might even find a new companion to travel with.
Don’t leave yourself short in retirement when your son has his whole life ahead to make money x

You're in a mixed age-range flat. That's what I'm trying to avoid, because in an ordinary block of flats the population is fairly transient and you never know who's going to be above, below or beside you. You never know whether you'll have toddlers thumping about above you or a baby screaming through the night on the opposite side of the wall to where you're sleeping, or a teenager gaming noisily. That's why I was looking at a place for over 60s. Because, while of course there's no guarantee that you're going to have good neighbours, some of the more obvious nuisances are ruled out.

I went to have a look at the flat that was for sale, but it looked over the courtyard of the development and not out towards the countryside and sea, which was what I'd want. It was a useful exercise and now at least I know how much/ how little space I'd get. It would be enough, but it's given me a reality check. My house has been up for sale for a couple of weeks. I've had three people to look at it so far but no offers — but in this uncertain climate, at this price range, there's a limited market and I know it will take time to sell. I finish work shortly and after that I'll dedicate myself to finding somewhere suitable. Thanks for your input, everyone. I'm going to sign out of this thread now.

Hmm, I'm not so sure.
A dear friend moved into one a few years ago and ended up being hounded by the other residents as she was the "young" and fit one. Anything from problems with picking up their prescriptions, giving lifts, to sorting out WiFi issues and even being drawn into medical emergencies.
There was always someone tapping on her door.
Also the noise drove her bonkers! Quite a few residents had heating problems and had their TVs and radios on full belt all the time.

Hearing* not heating .

It sounds like a really sensible solution, and one I wish my elderly relatives had done at a similar age! Check for any restrictions on leaving the flat empty for a period of time though.
The marina flat sounds like a nightmare. If Air BnBs are clamped down on then those could lose their value too. The over-55s flat is a much better long term prospect. If you’re busy out travelling and socialising you won’t be around as much to get involved in older residents’ dramas, but you might need to have clear boundaries too. Obviously watch out for the service charges and possible increases, but also bear in mind what you’d have been paying for annually for house maintenance, window cleaning and the like (coupled with the difficulties finding someone to do those things).

I’d be a little wary of handing over too much to your son at this stage. Is he sensible with money and what happens if his relationship breaks down and a wife or partner is then able to claim some of the money in a house?

I’d just buy a freehold flat in great condition.