libitina Posted February 4, 2006 Share Posted February 4, 2006 http://money.independent.co.uk/property/mo...ticle342258.ece Last year, home owners borrowed some £1.2bn through so-called lifetime mortgages and home reversion plans. Although the sum is small when set against the overall mortgage market, it is significant because the majority of borrowers using such schemes do not have sufficient income to support a conventional mortgage. Such equity release schemes have become popular with older home owners in recent years as a way to fund a range of expenditure, from once in a lifetime holidays and home improvements to health care. Quote Link to comment Share on other sites More sharing options...
JohnG Posted February 4, 2006 Share Posted February 4, 2006 (edited) Pefectly sensible thing to do, since Gordy has not increased the IHT threshold to match increase in property prices. Consider the following - IHT Threshold - £275k House value - £300k Other assests - £200k Therefore Gordy steals 40% ((300+200)-275) = £90k On the other hand - House & Assets £500k MEW (or other equity withdrawal method) for healthcare & super holidays etc £200k Gordy steals 40% (500-(200+275)) = £10k Therefore £200k worth of healthcare & fun only costs the heirs 200-(90-10) = £120k So there you have it. MEW and get 40% tax relief. Another unintended consequence. Good thinking, Gordon. Edited February 4, 2006 by JohnG Quote Link to comment Share on other sites More sharing options...
ThePiltdownMan Posted February 4, 2006 Share Posted February 4, 2006 Supposedly working people paid taxes all their life for the NHS. But in reality people have to borrow against their assets and buy healthcare separately. ie, they've (we've) all been conned. Quote Link to comment Share on other sites More sharing options...
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