Man, 102, takes out 25-year mortgage

Discussion in 'Wall St. News' started by Pekelo, Apr 4, 2007.

  1. Pekelo


    You must love the Brits!!! :)

    "Most lenders set a limit at 75 years for mortgage applicants but a handful, including Woolwich, and Bristol & West, have no such restrictions. This has led to a rush of applications from older investors.

    Jonathan Moore, of Mortgages for Business, an independent adviser based in Sevenoaks, Kent, told how he brokered the mortgage for the unnamed 102-year-old, one of hundreds he has arranged for pensioners. “This is a new phenomenon.Obviously there is an element of risk if property prices and rental income suddenly fall but there is no sign of that at the moment,” he said"
  2. Pekelo


    There is actually more to the story. It is a good way to minimize inheritance taxes:

    "A buy-to-let mortgage is not the same as a residential mortgage -- it is a 'business mortgage' -- and banks do not lend money on BTL properties unless the income from the property can service the debt. And mortgage debt can be written off against assets on death. The various Inheritance Tax laws enabled this man to use the mechanism to ensure his children would benefit more from his investments than the taxman."

    The whole thing happened back in November and the gentleman has died since...