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libitina

Mewing For Healthcare?

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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.

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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. :huh:

Edited by JohnG

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  • 301 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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