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Joe Black replied

23 August 2006, 19:56
Possibly...

here's one I built earlier:

The upper floor is of course obviously the most expensive.
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BlasterBates replied

23 August 2006, 14:14
Does this apply to sperm donors ?
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Joe Black replied

23 August 2006, 13:47
What happens when the parents are still alive but the kids get married etc. Does everyone still stay in the one house, or do the kids move out, buy another house which is then 'in-debted' to their kids, while they have to pay off the old folks one?

Starts to sound like the beginings of a pyramid scheme to me.
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TheMonkey replied

23 August 2006, 12:19
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.
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monkeyboy replied

23 August 2006, 12:17
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!!!!
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Erik The VIking replied

23 August 2006, 11:56
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.
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wendigo100 replied

23 August 2006, 11:55
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.
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stackpole replied

23 August 2006, 11:53
Originally posted by sasguru

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.
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DimPrawn replied

23 August 2006, 11:49
House gets reposessed, kids go bankrupt. Nice one.
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sasguru replied

23 August 2006, 11:46
But what happens if the kids don't want the "inheritance"? They can't be forced to pay surely, so who will?
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AlfredJPruffock replied

23 August 2006, 11:36
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 !
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Phoenix replied

23 August 2006, 10:48
Originally posted by 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.

I'm taking my money with me! The kids can look after themselves......I had to
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DimPrawn started a topic It's here.

23 August 2006, 10:46
It's here.

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.
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