It's here.

[DimPrawn]

http://news.bbc.co.uk/1/hi/business/5277838.stm

A mortgage which allows parents to leave their homes and home loans to their children has been launched by the Kent Reliance Building Society.
The "Inter-generational mortgage" would allow homeowners to take out an interest-only mortgage - and pass on both repayments and home when they die.

But the beneficiary would be left with a large debt, since only the interest on the loan would be paid off.

Some experts suggest that the mortgage could cut inheritance tax bills.


I can see this being a big hit and combined with uncontrolled immigration lead to a never ending property boom.

Buy the house of your dreams that you could never afford to pay off and then leave all the debt to your "lucky" children.

 

[Phoenix]

http://news.bbc.co.uk/1/hi/business/5277838.stm

A mortgage which allows parents to leave their homes and home loans to their children has been launched by the Kent Reliance Building Society.
The "Inter-generational mortgage" would allow homeowners to take out an interest-only mortgage - and pass on both repayments and home when they die.

But the beneficiary would be left with a large debt, since only the interest on the loan would be paid off.

Some experts suggest that the mortgage could cut inheritance tax bills.


I can see this being a big hit and combined with uncontrolled immigration lead to a never ending property boom.

Buy the house of your dreams that you could never afford to pay off and then leave all the debt to your "lucky" children.

I'm taking my money with me! The kids can look after themselves......I had to

 

[AlfredJPruffock]

Leaving debt to your offspring has been in place in Japan for some time.

The Sins of the Father ....

Thank goodness I dont have debts nor children !

 

[sasguru]

But what happens if the kids don't want the "inheritance"? They can't be forced to pay surely, so who will?

 

[DimPrawn]

House gets reposessed, kids go bankrupt. Nice one.

 

[stackpole]

But what happens if the kids don't want the "inheritance"? They can't be forced to pay surely, so who will?

Yes, it is totally barmy. Suppose the kids are useless chavs who are unable to pay it off?

This does nothing to help anybody. If people borrow more in this way, the prices will go up to compensate and we'll be back where we started but with even higher debts.

I'd make this illegal.

 

[wendigo100]

Japan built a "stable" economy based on debt, and have suffered 15 years (and counting) of sh1t since it started unravelling. You'd think we would learn the lesson.

 

[Erik The VIking]

Depends on the situation, if the kids have left home then what's the problem. Pay up or sell up, easy.

I agree that anyone taking out one of these in the expectation that the kids will still be living in it after they pop their clogs is looking for trouble.

 

[monkeyboy]

I can see this used as a method of avoiding HT.

100% mortgage. Give proceeds to kids. Retain enough in savings to fall just below the threshold. USe this to service the mortgage.

Ok this really is dependant on cercumstance but it is a great avoidance measure. You have to live 7 years afterwards.

Mother-in-law is trying to sort out her finaces at the moment.

Reminds me of the bumper sticker

Be nice to your children, they will decide what care home you go to!!!!

 

[TheMonkey]

I think the kids have to agree to it first and be on the agreement...

You'd have to be insane though. I think they should have a mortgage that never gets paid off EVER. It sits with £5 a month to go forever, then the mortgage company transfers the mortgage to someone else when you pop your clogs if you want to do it that way.