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Debt Now Lasts Well Into Retirement

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Thats 300,000 out of 10 million, so still only 3%

Approaching retirement and still have 40 years to go on the mortgage, heres a plan:

Rent a flat from some BTL landlord and move in

Rent out your own (mortgaged) house to someone else, sign a long lease.

retire

Tell the landlord you cant pay the rent any more

Get evicted

Get re-housed by the council

What could go wrong?

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Thats 300,000 out of 10 million, so still only 3%

Approaching retirement and still have 40 years to go on the mortgage, heres a plan:

Rent a flat from some BTL landlord and move in

Rent out your own (mortgaged) house to someone else, sign a long lease.

retire

Tell the landlord you cant pay the rent any more

Get evicted

Get re-housed by the council

What could go wrong?

Errrr.....not sure how this would work. What would the length of the lease on your own property have anything to do with it? At end of the day if you are receiving income from a property then this will affect your ability to claim housing benefit?

For those approaching retirement and with dual nationality, or an ability to plan ahead and/or qualify for citizenship of some non-EU country, here's another probably more viable scam?......

Use foreign citizenship, of non-EU country, to open foreign bank account.

Sell your house in UK (perhaps under the guise of, say, emigrating/retiring abroad). Transfer resulting funds from sale of your home to said foreign bank. Live somewhere in UK temporarily (you possibly not need ever actually leave the UK?)

Register a company in said foreign jurisdiction. Use overseas held funds to purchase a new, perhaps slightly downsized, property in the UK via your foreign company (i.e new UK house will be registered as being owned by foreign entity).

Sign a rental agreement with your own company, to live in what is in fact your own house! Start making rental payments to said overseas company. Shortly thereafter claim financial distress and claim housing benefit. Receive housing benefit and continue to live in your own house (already paid for) AND receive extra income to live off in form of housing benefit, in addition to your bona fide pension.

Flaws anyone?

Edited by anonguest

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Thats 300,000 out of 10 million, so still only 3%

Approaching retirement and still have 40 years to go on the mortgage, heres a plan:

Rent a flat from some BTL landlord and move in

Rent out your own (mortgaged) house to someone else, sign a long lease.

retire

Tell the landlord you cant pay the rent any more

Get evicted

Get re-housed by the council

What could go wrong?

You wouldn't be classed as homeless - the council would investigate and find you had a house. Your little scam would make you "intentionally homeless" under the "things you deliberately did or didn't do" to get yourself into that position.

You'd be on your own finding somewhere else to rent.

Anyway, in most places councils have huge waiting lists. Those accepted as homeless mostly get housed in the private sector.

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How many of those are equity release mortgages? That is, the mortgages that have only ever been available to over-60s, whereby they take out a lump sum with interest rolled over for the borrower's lifetime?

An excellent way to pass your wealth to your family: take the mortgage, give them their inheritance, but keep the house secure for life. For richer pensioners it also helps take the house out of the inheritance tax net.

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My mortgage is my pension.

:lol:

Many of these over-65s with mortgages will be super-equity rich. Need them to downsize. More houses to market, owners lowering prices to find buyers, bringing all house prices down.

> ‘Of those households that own outright, 60 per cent (4.3 million households) had a household reference person aged 65 or over. <

When they do come to market in larger number... where will the buyers come from, seeing so many are already pushing and falling over one another to stretch themselves into debt for pay £250K+ for HTB newbuilds and apartments.

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