I wonder if a way forward for Humph's pension panic is a substantial upgrade of his rental property.
It's fully paid, so selling it should provide the deposit needed for a house in the south east.
He wants a mortgage no longer than 10 years, which should be achievable provided he meets other lending conditions.
A £150K mortgage would be about £1,500 a month, which is a lot, but it's still under the housing benefit cap of £25K a year, and the cap is only a proposal.
The next question is what a house inside the M25 priced at around £250K would achieve in rent.
A quick Google suggests £250K would buy a two-bed flat in Camberley, Surrey, which would rent for about £1,000 a month.
Mmm, still leaves Humph £500 a month short, but tinkering with the figures, and particularly the property choice, might make the upgrade plan a goer.
There's a danger of drowning in a sea of property and rental prices, but a two-bed flat in a cheaper part of London could be bought for similar money and would return a bit more in rent.
Camberley v Camberwell here:
www.rightmove.co.uk/property-for-sale/Camberley/flats.html?index=10
www.rightmove.co.uk/property-to-rent/Camberley/flats.html?index=10
www.rightmove.co.uk/property-for-sale/Camberwell/flats.html?sortByPriceDescending=false&sortByRelevance=false&index=100
www.rightmove.co.uk/property-to-rent/Camberwell/flats.html?sortByPriceDescending=false&sortByRelevance=false&index=50
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>> A £150K mortgage would be about £1,500 a month, which is a lot, but it's
>> still under the housing benefit cap of £25K a year, and the cap is only
>> a proposal.
I could get (just checked) an interest only buy to let mortgage 10 year term £150,000 mortgage for £627.90 a month.
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>> A £150K mortgage would be about £1,500 a month, which is a lot, but it's
>> still under the housing benefit cap of £25K a year, and the cap is only
>> a proposal.
I could get (just checked) an interest only buy to let mortgage 10 year term £150,000 mortgage for £627.90 a month.
Re your Camberley flats right move tells me I could buy a two bedroom flat in Camberley for
£169,000
www.rightmove.co.uk/property-for-sale/property-30906037.html
The cheapest rental in Camberley is £750 P/M
Seems to me the numbers add up quite well at first glance.
Last edited by: Zero on Mon 23 Jan 12 at 08:16
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Could Humph upgrade his renter? - Zero
