# On the Horns of a Dilemma....



## JackieP (Oct 15, 2006)

Please can you help us. We're stuck and going round in circles. It would be good to have your thoughts.

First, some background. We're both in our 50's and have been travelling for 2 years in our van while the house has been rented. Our tenants moved out and we need to make some decisions.

We're in a priveliged position in that both of us were married before and took out pensions very early on so are now in the position that we are able to live (very carefully) on the reduced pensions that early retirement brought.

Our house is worth about 220k and the mortgage is 120k which would leave us with equity of 100k. House prices here are high and that 100k would not allow us to buy again without taking out a mortgage (and we'd need to work again.

Our hearts are in travelling and one way or another we're going to be heading off again as soon as we are able.

And here is our dilemma......

If we rent the house out it would leave us with an income (after mortgage and insurances) of about £300/month.

If we sell we'll have only our pension and out of that we would have to pay insurances/road tax of appox £200/month.

Our hearts are telling us to sell the lot and go fulltiming but our heads (and many of our friends) are saying hang onto the house. We're not getting any younger and it's our only security. We have no emotional ties to the house so selling it would not bring us any sadness.

So, one day we're going to put it on the market and sell everything we own and the next day we get cold feet.....

Other thing to consider are that - if the interest rates rise (as they surely will) and we keep the house then our pensions would struggle to keep up with the increased payments. We could end up having to stay and work just to keep the house going - and therefore - no travelling.

Also - the house is very old and things (big things) are beginning to need replacing - windows, central heating boiler. Again - if we hang onto it we're going to find replacing things like that impossible.

But.... if we set off into the sunset with 100k in the bank... what the hell do we do for out old age (don't laugh - it's closer than you think).

I guess the crux of it is - that we WANT to get rid of it and everything else. We want to be free spirits with the lack of responsibilty that would bring - but our heads are making us mighty cautious...

We're going round and round and are in danger if disappearing up our own bottoms.

Any words of wisdom for us?

Thank you

Jackie and Bill


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## tomnjune (May 1, 2005)

hi
we live just across the water in heysham. we did have a similar decision a few years back. if i was in your shoes, sell your property, and with the equity buy a small apartment, on the mainland, here in heysham there are some brand new ones for less than100k. you could clear your mortgage, it would be maintenance free, rent it out if need be, but you would always have that foothold to come to should one of you fall ill whilst on your travels. but life is for living, this is not a rehearsal, enjoy your travels.

tomnjune


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## dawnwynne (Nov 14, 2009)

That's exactly what I was thinking. Keep a foothold on a small property with the £100K so you always have a home...rent it out and continue your travels. 

If you kept your present house what are the chances of you paying off your mortgage? If that is unlikely then you must consider what you will do when you need to give up touring...how will you make the mortgage payments then? 

What I wouldn't do is let that £100k start to dwindle...then you lose any security you have.

Good luck whatever you decide.


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## Wizzo (Dec 3, 2007)

I can fully appreciate the thoughts that are going through your mind. We decided to sell up and live off the proceeds and that is just coming to fruition now - we have had an offer on the house this weekend and have accepted.

I couldn't make the Maths work to retain the house and be able to live out on the road so the house had to go. There is no going back from here but it's our decision. It's only bricks and mortar and it seems that people do still have a life even if they don't own their own house and that's a bridge we are prepared to cross if and when the time comes.

We both took the view that if we don't do it now then the likelihood is that we never will. Life is for living after all.

JohnW


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## dovtrams (Aug 18, 2009)

Agree with tomnjune, you dont want to be in a position where you have nowhere to live in the future, keep an interest in the property market.

dave


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## asprn (Feb 10, 2006)

Whilst you still have the £120k mortgage, you're at the mercy of the markets. Rates are currently low, but this may (will) not last for ever. Getting off the credit ladder was the best thing we ever did, and it leaves you much freer to make decisions. Your capital will be released, and I think the advice to buy an apartment - preferably maintenance-free, e.g. new or nearly-new - is sensible. You could derive rental income from it, so you should factor that in to the bigger equation. It will also provide security as a fall-back as has been said, or indeed as part of the big plan for later on, as & when you want to live "on land" again. 

One other thing which jumps out at me is the references to impending big bills on your house. That feels somewhat shivery, and I'd look carefully at that and consider off-loading before you're bitten on the bum.

Dougie.


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## twoofakind (Jun 24, 2009)

Looked at this four years ago. Since then both retired and still got the house. It's let, but we did get a buy to let mortgage on it. 

If you can sell you might be able to transfer the mortgage to a flat or small house. Take your profit out and let the flat/house to pay for it. Ok it's mortgaged but you've had the money and still have landed status. 

If they are still out there, a buy to let mortgage can run into your nineties.

Having said all that our dilema is the same we would still like to sell!! :x


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## riverboat2001 (Apr 2, 2009)

Wow, i never thought i would ever take an interest in this type of conversation, but Paul and i are looking at retirement in about 5-8 years time, we hope to be mortgage free and want to travel as much as possible.

My thought was selling up and perhaps having a park home, this perhaps would give us a "home base" of sorts that we imagine would be cheaper than buying a smaller property.

I had thought about renting out our place but friends of mine have had some awful trouble with tenants.


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## rayrecrok (Nov 21, 2008)

Hi.
You can always get a council property or rent private if you decide that you are sick of living in a MH or you are too old or sick, so running short of money is not to calamitous.


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## JackieP (Oct 15, 2006)

Thank you for your replies. Renting is a fickle business. Our last tenants started out well but it ended up badly leaving our house in need of drastic repairs. We've been working solid since October and it's only just now back to how it was. It would take a lot for us to consider it again. It also leave us with the problem that if interest rates rise significantly, we would have to use our pension to pay the increase - therefore - no travelling.

We are on interest only mortgage - so the house would have to be sold at some point to pay off the £120k debt.

The idea of buying elsewhere is a good one. While travelling, we fell in love with Brittany and it is still possbile to buy a cottage in the country (our dream) for 80 000 euros.

Yes - the age of the house is a worry. It will also need rewiring at some point - and the roof replacing.

To be honest, we just want to be free of the responsibility.

I remember us sitting outside having breakfast at Alvor and thinking that it was wonderful having no huge responsibilies. The only question was 'the house'. What to do with it and what to do with our many belongings. The attic has gone from full to half full and soon it will be empty. It's a good feeling.


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## JackieP (Oct 15, 2006)

rayrecrok said:


> Hi.
> You can always get a council property or rent private if you decide that you are sick of living in a MH or you are too old or sick, so running short of money is not to calamitous.


THANK YOU!

This is _just_ how we feel. But well-meaning friends and family have half scared us to death with horror stories. I guess they are just in a different mind set to the rest of us.


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## JackieP (Oct 15, 2006)

By the way... Our released equity would be firmly tied up. We are able to live on our pension. We've met too many people of the road who have sold their houses, put the money in the bank and dip into it far too often.

Some of their stories were very sad, but the postive upshot is that we would be very very careful not to touch it unless it was to invest in property.


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## lalala (Aug 13, 2009)

I would agree with most of the replies, downsize your property but think very seriously about selling altogether, especially as it sounds that you already have doubts about the wisdom of not keeping a stake in the housing market. 
£100 000 equity might sound like a lot of money but it soon goes and once you have left the property market it\ll be very difficult to get back in. I know council housing or private renting was mentioned but with the former at least you would have little control over where you ended up living.
If, on the other hand, you just loved full-timing and still felt like that after 5 - 10 years you could then sell the property you downsized to.
Difficult decision,
Lala


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## Jennifer (Mar 24, 2009)

This forum is absolutely fantastic for airing "dilemas", as actually once they have been aired and you start receiving responses, I think you too have answered your own question.

I think in one thread you said you do not need the equity to live on as your pensions are adequate enough - so I like many others on here would think that selling your current home would be the answer for you, and reinvesting the proceeds after paying off the mortgage in a smaller property i.e. flat apartment, then letting the same out, which will give you additional income. Alternatively, you can sell your current property, and blow the entire proceeds after repaying the current mortgage, and if and when the time comes that you have had enough of travelling, look to the government for support and housing.

Whatever you do decide, I wish you all the best and Happy Travelling

Jenny


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## charlieivan (Apr 25, 2006)

We sold our house about 5 years ago and bought a park-home. It is perfect for our lifestyle as being on a secure park we have no worries about leaving it when we go away,often for months at a time. We do have to pay a small ground rent but it is really no more expensive than maintaining a house. When at home we have lovely quiet surroundings and friendly neighbours all who must be over 50 with no young children to live here. The value of the park home does increase as with a house and is much easier to maintain.


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## lalala (Aug 13, 2009)

Jennifer said:


> if and when the time comes that you have had enough of travelling, look to the government for support and housing.
> 
> Jenny


Would it be the government that would 'support and house' or all the people who pay taxes?
Lala


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## DABurleigh (May 9, 2005)

Spend some time choosing a nice park home and come and go from touring as you please.

Dave


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## babyrhino (Oct 19, 2006)

Two problems are clear.

1. Old house = problems and potential cost

2. Mortgage on old house = paying it back out of your pensions and the risk of interest rate rises.

I think one thing is certain - you have got to go with the main thrust of advice on this post and get rid of the existing house and clear the mortgage! 

Whether you then put the residual amount into a new property is your choice but my view would be that this would be an improving investment over time and the temptation to dip in to any capital sum would be removed.

I am in a very similar situation and my thoughts are towards putting the spare cash into a property abroad. We are looking at the Carcassonne area on the basis that, if we use it for ourselves, it gives us options to travel in two different (warm) directions. If we rent out for holiday lets we still have the option to use it part of the year ourselves.

Best of luck with your decisions - nobody ever said it was easy!

Regards

Brian


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## JackieP (Oct 15, 2006)

That seems to sum things up rather nicely - thanks.

Well, after a night's hard thinking, I think the way to go is to sell and buy again - probably somewhere abroad where our money will go further.

All we have to do now is get rid of 50 years worth of stuff.

I feel another dilemma coming on. 

Thanks again to all who replied. It is indeed the case that just talking about it with others brings the solution.


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## DABurleigh (May 9, 2005)

Glad your mind is clearer and you have decided to live abroad. 

You now have thinking room to consider £/Euro (and other) exchange rate predictions and their impact on pensions, property value and healthcare with your chosen lifestyle 

Dave


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## dawnwynne (Nov 14, 2009)

Well done Jackie, and congratulations on making a decision....now it gets exciting!!


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## pat62 (Jan 19, 2010)

Sounds good advice to buy a flat, perhaps near a station so its easy to rent 

You can get flats that are near stations commutable to London for 100k

But this is opinion obviously do your research

I wonder if retirement flats are easy to rent ? that way when you have had enough you got somewhere to go !


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## JackieP (Oct 15, 2006)

March seems such a long time ago now.

In May I became unwell and all our plans were put on hold indefinitely. I had the 'all clear' in August but we became more nervous about selling the house and decided to do another year's let to give us some space to do some serious thinking.

But, the thought of being non house-dwellers, non mortgage payers, and being free of many of the delights that come with the maintenance it involves kept coming back to us. That and the sometimes overwhelming feeling that we really do want to be true full-timers, not the part-timers we've been. The longing still seemed to outweigh the risks.

So - just for the hell of it we ran an advert in the For Sale column in the local paper. We priced it fairly high (given the sluggishness of the current market) and waited to see what would happen. We gave ourselves two weeks and, if nothing happened we would go down the rental route.

And - we've just had an offer close to the price from a family who have already sold their house and have the funds available.

And - we've accepted.

And - we're in shock. The excitement is there but it's masked at the moment. Any lovely words of encouragement would be thankfully accepted. 

Jackie and Bill.


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## catzontour (Mar 28, 2007)

Jackie and Bill, re-reading through this thread it seems to me that some things are just meant to be.........go for it. You don't say how unwell you've been but if your health is back on track it just reinforces that life is too short and you should seize opportunities as they come along.

We did a similar thing five years ago, sold the family house, downsized and rented the smaller house out and had two and a half wonderful years of travelling full time. For various reasons we've had to stop and are now back at work and living back in the house but we'd do it all again tomorrow. Good luck.

Catz


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## zulurita (May 9, 2005)

Well done Jackie, Bill,


Looks like all systems go, it is meant to be. Good luck with the sale and future travels.


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