It's a tough call. From what you say I don't think you've got enough money to buy.
A reflex response is to discuss it with the relative, go through the pros/cons, and aim for the best compromise. But of course you don't know all the options, and hitting that balance between independence and comfort/security is incredibly difficult in a number of cases. By '(current home) no longer suitable' I'd guess there's a mobility issue?
The current thinking is to try to enable people to continue living in their own home, and there's quite a network of support/adaptations available. Council OT and social services are there to help, hopefully.
I'd have a word with your local specialist HA - someone like Anchor or Hanover - and explain the situation and see what they say. Or even Help the Aged or these people:
I live a mile from a town of 3000 people, which I think probably counts as small. There's two supermarkets - slightly more expensive than an asda or lidl, but not painfully so by any means - probably similar to normal posh supermarket price, but they sell a full range of food. There's a very good doctors surgery + clinic in the town which copes with anything not needing full-on hospital work.
It's also got plenty of clothes available for the older generation, but that probably doesn't interest you :-)
Thanks for your advice. I am speaking to other relatives at the moment to see if they are willing to provide financial support for the one that is separating from the family, but at the moment I am conservatively assuming I'll be the only one willing to help her out.
Even something simple like this will do for an elderly woman with no family:
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in Region of £49,950
2 bedroom chalet for sale
22 Panteidal, Aberdovey, LL35 0RG
Properties such as this can meet you initial budget but they will not meet your aspirations for an investment.
The owners of these sites (as with resedential/holiday caravan sites) have you at their mercy.
They can increase the service charges whenever they want to, and they take a cut of any sale - note the requirement to sell to them unless they don't want it, in which case they get 5% + VAT of whatever you get on a private sale.
These conditions are what keeps the price low - it makes the property initially affordable but does not make it a good investment.
Why not invest your £50k and use the interest and part capital to pay for a rental property.
Many good properties which meet your requirements are availabel currently for £400-£500 per month.
Assuming an expenditure on rent of £5,000 per year that is at least 10 years before the money runs out, and meanwhile you have the opportunity to add to your investment (along with any sympathetic relatives) and from some of your posts it appears that more finance may become available in the future. If so, you can then decide if you want to carry on renting or if you can buy somewhere. It is only the UK (and recently at that) where ownership of property has become the norm. Most UK people in past times, and elsewhere today, rent.
Your relative does not have to live alone - many people share rented accomodation and sharing the costs will give better value for money.
For instance you should be able to get a three bedroom semi detached property for about £750 per month in most areas, and for less in cheaper areas.
Two people sharing get a bedroom each, a spare room for occasional visitors, and companionship. All for £450 a month.
I happen to live in Felixstowe in Suffolk, which is a retirement town (Harwich for the continent, Felixstowe for the incontinent) and I think that if you decided to rent you could meet all your other aspirations here.
To buy, you are looking at £90k plus and compromising on the garden and desirable area.
Prices were lower in the mid 90's than early 90's. They went down for about
6 years between 1989 and 1995.
Suggest the OP waits a few years, same is happening now. Except the rise in prices was much greater this time and therefore so probably will be the fall.
There's lots of rental availability at the moment and you can get bargains, as people who are unable to sell (or who are stupid enough to be asking 2007 prices) are forced to rent out their property instead.
You are going to be struggling to buy a decent house for 50k even in the current climate. The only place I know where houses can be that cheap is the Western Isles and I doubt if your relative would want to relocate there.
There is another possibility I can see, Kristen. Your relative could possibly get a mortgage despite her age if you or someone else with the necessary assets or income would be prepared to give a guarantee to the lender. I assume you own your own house and have a decent income from your business. You could always take a charge on the house to protect your own interests should you and your elderly relative fall out and she decided to leave it in her will to somebody else.
Why does your relative have to own her house as I feel sure there are lots of people out there who would be very happy to let a house to an active elderly lady on her own? No problems with rowdy kids, no problems with boyfriends/parties etc. Depending on her income, she could possibly qualify for Housing Benefit and Council Tax benefit from the local council to help with rent and Council Tax. She should be able to rent a rural house with garden in decent condition for about £400 to £450 a month.
Can I ask if your relative has a decent pension as sustaining a mortgage would be quite a drain on her resources. Were she to borrow £100,000 she would be looking at substantial monthly payments which, no doubt, somebody from uk.finance could calculate more precisely.
The downside of this is that if the occupier of the property has to leave the property or is unable to keep up the rental payments for other reason, she loses not only her home but the monies she paid up front towards the purchase of the property.
but I don't expect there would be any objection if a resident wanted to do some border planting). Not rural, which I think we all agree is unrealistic, but close to the railway station. But like most retirement properties it is *small* room sizes. Well done for finding it.
There are plenty of houses for sale here in NE England for under 50k. I posted a link to some in Hartlepool. There are plenty of others available in other areas. Some are even in fairly decent areas and don't need renovation.
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