Retiring

[hammersmithlad]

Then there’s the issue of tenants that refuse to pay rent. My folks got hit with that, the tenant was the eldest child of a close friend, she was a mother and worked as a nurse (so respectable one would imagine) but she stopped paying rent and it took 9 months to get her out through the courts and when they did, she’d trashed the place in his last week and they had to spend £20k on a new kitchen, bathroom and redecorating. They took her to county court for that and managed to get a court order saying she’d pay back £50 per month as it was all she could afford.

The stress of that aged my Dad very badly and wiped out much of their savings.

I’m a big fan of BTL’s, but as with anything, one can be hugely unlucky.

Blimey...sounds like an episode from Nightmare Tenants on channel 5.

Yes, the benefits of wasting away time during lockdown last year & watching trash tele.

 

[denislawsbackheel]

Can they go back further than 7 years in certain circumstances?

Councils can if they think it was done to avoid care home fees.

 

[denislawsbackheel]

Being married and owning a house me and the Mrs can leave £1million to our kids between us before IHT kicks in, due to two personal allowances and two property allowances.
My assets are well below a million, as I expect, is true for most on here.

 

[Blue Maverick]

A question on gifting money my mum us getting £60k from my grandma estate, she is giving me and my brother and sister £10k each, is there any tax implications, if she and my dad died tomorrow their estate would be about £300k.

 

[Manchester33]

A question on gifting money my mum us getting £60k from my grandma estate, she is giving me and my brother and sister £10k each, is there any tax implications, if she and my dad died tomorrow their estate would be about £300k.

My honest answer is that I don't know. But I'm sure you have to pay tax on 'gifts' over a certain amount?

If your parents died tomorrow *Touches wood* it would class as part of their estate as it's within 7 years of their death. That's only the case if one of them dies though. As their estate is around £300k you wouldn't have to pay any inheritance tax AFAIK.

 

[denislawsbackheel]

A question on gifting money my mum us getting £60k from my grandma estate, she is giving me and my brother and sister £10k each, is there any tax implications, if she and my dad died tomorrow their estate would be about £300k.

None at all.
There is no tax on a gift other than it having IHT implications.
The amounts you describe put the estate outside IHT.
So nothing to worry about.

 

[cityontheup]

Copy of a post I placed on here last week, may help (hopefully)

Someone mentioned "dreaded equity release"

Due to the financial crisis a decade ago I lost quite a lot of money on my business, so much so I had to remortgage my house which was due to be paid off in 2013. So here I am at 62 with 34k mortgage outstanding for another 6 years and paying nearly 600pm. I've been a member of the Nationwide for a long time and I called about their lifetime mortgages.

I've had one approved and it works out like this:

I pay 136 per month for life, I look at that as about 35 a week rent.
Ive upped the amount to 50k and put the difference in my early retirement pot, when me and Mrs H die we leave a house with a current value of 200k meaning we still leave 150k. If we can't afford to pay the 136 (won't happen) we have the option to not pay and accrue the debt with the 50k, after 25 years that would be about 100k still leaving a chunk of money to pass on.

There's a charge for Solicitors usually about 700 but the Nationwide fund it by giving you a grand.

I wouldn't touch the ER companies out there but Nationwide have done over 7k of the mortgages since they started to offer them.

When you apply and to get one of these lifetime mortgages do you have to show proof of earnings ie. still be in work. Or if you intend to use it during or starting your retirement do you have to show how much pension you will/ are receiving ?

 

[worsleyweb]

Just signed a contract for another new job today! Take me past my 50th birthday. That should be it.

 

[hammocity]

When you apply and to get one of these lifetime mortgages do you have to show proof of earnings ie. still be in work. Or if you intend to use it during or starting your retirement do you have to show how much pension you will/ are receiving ?

There's lifetime interest only mortgages and Rio's, Retirement Interest Inly mortgages. The first one involves divulging your financial planning, what you and if you have a spouse are earning, savings, any other income you have. The RIO is purely based on retirement income, state and private pensions, any buy to let etc. In both cases you only need to prove you can afford the payments but as I said the Nationwide have processed 7k of these mortgages, really takes the pressure off if like me you're pressured into paying a relatively chunky mortgage when your just effectively paying to leave money behind. The kicker is in my case if we get to an age where we could do with the extra £136 per month we just stop paying and the interest is added to the original debt, as I said in 25 years a 50k ER would equate to about 100k but my house is about 200k so I'm still leaving 100k as a gift. Nationwide are reputable and it's a fantastic scheme.

My mate has a saying, "fly first class, if you don't your kids will" get it done e if it suits you.

 

[cityontheup]

There's lifetime interest only mortgages and Rio's, Retirement Interest Inly mortgages. The first one involves divulging your financial planning, what you and if you have a spouse are earning, savings, any other income you have. The RIO is purely based on retirement income, state and private pensions, any buy to let etc. In both cases you only need to prove you can afford the payments but as I said the Nationwide have processed 7k of these mortgages, really takes the pressure off if like me you're pressured into paying a relatively chunky mortgage when your just effectively paying to leave money behind. The kicker is in my case if we get to an age where we could do with the extra £136 per month we just stop paying and the interest is added to the original debt, as I said in 25 years a 50k ER would equate to about 100k but my house is about 200k so I'm still leaving 100k as a gift. Nationwide are reputable and it's a fantastic scheme.

My mate has a saying, "fly first class, if you don't your kids will" get it done e if it suits you.

Thanks for the reply, my wife and I are both 60 and looking to retire, we still have a relatively high mortgage but we part own a property in Florida that we wish to start using. After reading your post we could pay down our mortgage to £50k like yourself use the company pensions we are now receiving to pay the monthly charges. This may then allow us to stay in Florida for a few months then come back to the UK and stay in our house here. The only issue is the costs of the house whilst we are in the US, such as utilities and council tax.