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Charlie The Tramp Returns

A New Lender On The High Street: The Bank Of Gran And Grandad

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The Bank of Gran and Grandad

The Bank of Mum and Dad has become one of the most popular lenders on the high street during the fragile economic recovery.

But now there’s a new player in town who is set to rival its generosity.

The Bank of Gran and Grandad helped out family with an average payout of £23,328, according to the latest figures by equity release group Key Retirement Solutions.

The survey of more than 1,200 retired home owners found that 23 per cent raised money from their properties to help family during the past year.

The money was used to help children clear their debts as well as to buy houses and cars.

Widowers are the most generous to families handing out average cash gifts of £30,100, while married couples paid out an average of £20,258.

Sons are more likely to be given handouts than daughters, receiving £21,131, compared to £18,625 for daughters.

When Gran and Grandad exhaust their assets who next fills the void. :D

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Denial

Anger

you are here >>

Bargaining - Bank of Mum and Dad may be f*cked - Granny's got cash! house prices will be ok, everything will be fine right, I won't get repo'd?!?

Depression

Acceptance

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Where is this all leading?

Justin and his sister Bethany visit Gran and Grandad they tell them you are getting older and due to the possible longevity of your life you may have to go into Residential Care and will have to sell your house to pay for it.

Gran and Grandad are shocked, when we go we want you to inherit our house, how can we avoid it leaving at least something for you both.

Well the best bet is to withdraw equity from it by getting a large cash sum, you live in it FREE for the rest of your life and the Equity Company take it when you go.

You can then give us the money so we both can buy our own homes so we don`t need yours.

That`s a great idea says Gran and Grandad but what happens if we have to go into Residential Care.

No worry says Justin and Bethany those fools the Taxpayer will pay. :rolleyes:

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nearly there :D

23% of retired home owners doing this in 1 year?! :unsure: So, summed over previous years, what is the total proportion of the oldies doing this? :blink:

Interesting implication is that 23% of retired home owners have nothing other than the equity in their home.

Can't see this ending well for many concerned. It really beggars belief that in this day and age people cannot live a life, be well fed, and have a roof over their heads without going into massive debt. There is something really screwed up in this society.

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No worry says Justin and Bethany those fools the Taxpayer will pay. :rolleyes:

and then Justin and Bethany find themselves paying10% extra income tax and a more expensive mortgage (due to effect of high govt borrowing pushing up rates), and they do pay afterall, wondering what the feck happened to utterly destroy their inherited middle class lifestyle

and the renters clear up after property completes a 15 year secular bear cycle

amen

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and then Justin and Bethany find themselves paying10% extra income tax and a more expensive mortgage (due to effect of high govt borrowing pushing up rates), and they do pay after all, wondering what the feck happened to utterly destroy their inherited middle class lifestyle

and the renters clear up after property completes a 15 year secular bear cycle

amen

Sadly as history has shown it does not happen that way these people always seem to win through I`m even seeing it today.

If you don`t have a pound in your pocket then your pocket always remains empty if you have a pound in your pocket that pound tends to multiply as long as they remain debt free. :rolleyes:

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23% of retired home owners doing this in 1 year?! :unsure: So, summed over previous years, what is the total proportion of the oldies doing this? :blink:

Interesting implication is that 23% of retired home owners have nothing other than the equity in their home.

Can't see this ending well for many concerned. It really beggars belief that in this day and age people cannot live a life, be well fed, and have a roof over their heads without going into massive debt. There is something really screwed up in this society.

isnj't this just the baby boomers (the parents and grandparents) handing back some of what they have taken and will continue to leech for long after their deaths from their grandkids ?

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isnj't this just the baby boomers (the parents and grandparents) handing back some of what they have taken and will continue to leech for long after their deaths from their grandkids ?

and just who is taking the money? and why do they need more than the young can afford?

oh yeah...ponzi banking....

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Where is this all leading?

Justin and his sister Bethany visit Gran and Grandad they tell them you are getting older and due to the possible longevity of your life you may have to go into Residential Care and will have to sell your house to pay for it.

Gran and Grandad are shocked, when we go we want you to inherit our house, how can we avoid it leaving at least something for you both.

Well the best bet is to withdraw equity from it by getting a large cash sum, you live in it FREE for the rest of your life and the Equity Company take it when you go.

You can then give us the money so we both can buy our own homes so we don`t need yours.

That`s a great idea says Gran and Grandad but what happens if we have to go into Residential Care.

No worry says Justin and Bethany those fools the Taxpayer will pay. :rolleyes:

Remember what happened to Margaret Rose.

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Sadly as history has shown it does not happen that way these people always seem to win through I`m even seeing it today.

If you don`t have a pound in your pocket then your pocket always remains empty if you have a pound in your pocket that pound tends to multiply as long as they remain debt free. :rolleyes:

really?

what part of the population, and over what timescale?

(if you refer to the upper middle classes then I think you are mistaken btw)

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Remember what happened to Margaret Rose.

??

she had all the opportunities that a young life could receive but had an unhappy life ever after, never really working out? that what you're saying?

I know that the very richest have a habit of hanging onto their wealth down generations - but I only see this in a minority of the overall population

the established upper middle classes in the home counties are not in this category IMHO - they have gotten lucky off the back of the continuous rise and dominance of London over the past 100 years; prior to this in the 19th century Liverpool Manchester and Birmingham could make you almost equally rich, who'd have predicted their relative fall from grace, and the associated fall of those families whose careers and educations were invested in those cities

only a small number of them - those smart enough to really understand money - will survive the credit crunch; although the mechanism Charlie outlines might be plausible, I don't know how many of them will be smart enough to take it and also make it work - at the very least, said kids will only end up piling into properdie only to lose what they thought they had gained

Edited by Si1

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She signed over ownership of her holiday home to her son who promptly sold it :(.

Princess Margaret ? (I'm confused)

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Princess Margaret ? (I'm confused)

She owned a house in Mustique where she spent a lot of time and was happy. To avoid death duties, she signed it over to her son who promptly sold it leaving a large void in her life. From then on she went downhill fast.

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http://www.dailymail.co.uk/femail/article-457756/The-moment-princess-fell-gangster.html

Colin Tennant was ultimately compelled to sell Mustique. While Patrick Lichfield, Mick Jagger and Tommy Hilfiger still owned houses there, Princess Margaret's son, David Linley, sold her house, Les Jolies Eaux, while she was still alive, at which she was said to be deeply unhappy.

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She owned a house in Mustique where she spent a lot of time and was happy. To avoid death duties, she signed it over to her son who promptly sold it leaving a large void in her life. From then on she went downhill fast.

cheers

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She owned a house in Mustique where she spent a lot of time and was happy.

Reminds me of Mr Roddy Llewellyn, he spent a lot of time with Princess Margaret on Mustique, much to the interest of the tabloids. Never knew he had a career as a TV gardener.

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The good and completely immoral part of borrowing from grandparents is they'll die before asking for a penny back.

Still, it does get round inheritance tax (which is equally immoral) doesn't it ?

Edited by exiges

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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