Renting Forever .....

[katekoala]

After having to walk away penniless from an abusive marriage a few years ago I am now with with my new man and am renting .... Because of our age (40's) and we have no savings we are coming to the realisation that we will have to continue to rent forever ..... My concern is, what happens when we are old?

We are on modest incomes and with the high rent we pay now, we are lucky if we can save £500 a year - we will never be able to pay £800 rent when we are pensioners - so what would be our options?

I don't ever expect handouts, and never have - but we would never be able to save enough for A house deposit let alone to live off for another 20-25 years :(

Trying to be sensible and plan as much as possible but no idea what the options are, any help would be much appreciated.

Thank you

[factor-fiction]

If you are in your 40s you won't be getting a state pension until you are around 70 so you have time to start preparing.
Do you make or have you made any private/company pension contributions?
If you are paying anything like £800 rent now then that money could be used to pay for a mortgage. You may be able to get a mortgage on a modest property, and you may have paid it off by the time you draw your pension.

[katekoala]

Hi factor function ... We cannot get a mortgage as we would need a minimum of £15k deposit, which we cannot save - as all our money goes towards bills :( .... This is the catch 22. If we ever managed to save a deposit (roughly 8 years) my husband would be 53 - and we would then need to get a mortgage over a smaller period of time, say 15 years (as lenders will only lend to a certain age) which would mran a mortgage payment of 800-1000 a month, which we dont want to be payin when we are 60! this is why we know we will never be able to afford a house . We know what we spend on rent could cover a mortgage payment - but we are unable to get on the property ladder -- which is why my question is aimed at what our future will be :(

[ladybirder]

Have you looked at this scheme?

https://www.gov.uk/affordable-home-ownership-schemes/shared-ownership-schemes

[factor-fiction]

Hello, factor-function here.
I assume you have ruled out moving to a less expensive flat so that you can afford to save a bit for the future.
I wouldn't give up on the idea of getting a mortgage- in the long run it may cost you less, although you may have to have a smaller property. There are schemes- maybe a shared equity scheme. I'm not sure why you feel you don't want to pay mortgage payments when you reach your 60s- if you stay where you are you will need to pay rent beyond that age.

[themas]

If you intend to stay in the same area you could go onto the local authority social housing waiting list. At present you would probably be low down the list & unlikely to be offered a property but that depends to some extent on the social housing provision in the area where you live.

When you get to retirement age it may be more likely that you would be offered a property - again, this depends on availability in the area but in some places there is more social housing available for older people - & having been on the waiting list for a long time might help.

Under the present rules people over 60 are regarded as in priority need for social housing if they cannot go on living where they are & meet some other conditions. However, the rules will probably have changed by the time you reach that age!

[ummmm]

My uncle got a lovely council flat in his early 60's.

[aelmpvw]

don't pensioners with limited savings get help with rent through pension credit?

[factor-fiction]

If it's any consolation there will be lots of people of your age who haven't (for whatever reason) provided adequately between the ages of 20 and 65 for their future pensions, savings and housing and will need to accept what you call 'handouts'.

But whilst there will almost certainly be some sort of safety net available in 20 odd years from now I suggest we cannot rely on things staying as they are. I feel it's much better to plan now (as you are doing) so you are more in control of your destiny.

[daffy654]

Whereabouts in the country are you? £800 per month is high for a one or two bed rental where I live so I assume you are down South? Could you perhaps look at renting a cheaper property?

[factor-fiction]

>"don't pensioners with limited savings get help with rent through pension credit?"
Yes, at present (then it's the universal pension) but it's nowhere near enough to cover £800 a month rent! Housing benefit is also available but I don't think it covers private rents or mortgages, but someone may correct me

[ummmm]

It does cover private rental. How do you think the clerics have managed to stay in their London homes.

[The Builder]

Very much a long shot, I know, but it might be worth looking out for a job for one of you that includes accommodation. A flat or a cottage maybe.
No rent, so more savings.
It's just that I know a few farmworkers who have done just that, then bought.

[katekoala]

in reply to to ffunction - it's not that I dont want a mortgage past 60, its that lenders aren't keen to lend to people who cant pay off mortgage before they retire - therefore, they will only give us a mortgage on a shorter length of time, which increases payments to much more than the rent we pay now..

thanks all for all the answers - most of the answers confirm what I already know, which is to save what I can and try and get somewhere cheaper :)

The shared schemes - or council lists maybe an option

thank you
x

[hc4361]

I would not normally recommend 100% mortgage but as you are already paying such a high rent; mortgage rates are currently low and you probably have all the household essentials such as furniture, white goods etc I think it may be a sensible solution.

http://www.money.co.uk/mortgages/100-mortgages.htm

In your mid 40s now, a 25 year mortgage would take you to 70 which is not a problem for lenders.

[katekoala]

I didn't think they did 100% mortgages anymore, after this is (mainly) what caused the housing crash .... ? But will take a look at the link.
thank you