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  • Mortgages & Finance

    BOMAD, Intentional deprivation etc

    There was a very interesting Radio 4 You and Yours programme on 2/5/17

    It was all about the BOMAD and what it was doing to effectively support the housing market.

    Definitely worth listening to.

    What was worrying though was the biggest omission in the programme.

    Not one person made any comment regarding the vast sums that the BOMAD is expending on supporting family members etc onto the housing market and the fact that many councils might regard such largesse as 'intentional deprivation' to avoid potential care home fees.

    It seems the BOMAD is giving away money with careless abandon without a thought as to how giving away such funds would be considered by councils if it comes to the BOMAD requiring a care home with their fees to be paid by councils.

    It tends to be that the BOMAD and also the BO Grandad and Grandma are senior in years and could well require a care home.

    At what point would councils consider that the BOMAD has not intentionally deprived themselves of assets which councils could have used for care home fees!?

    Could such councils insist on the assets being returned!?

    Would that mean properties being subject to forced sales with the BOMAD children being evicted from their homes to enable councils to recover the assets given away by the BOMAD to their children.

    Maybe the BOMAD invested in BTL in their children's names.

    Will councils require those BTL properties to be sold!?

    There are so many ramifications of this intentional deprivation caused by the BOMAD is makes my head spin!!!.

    From what little I know it seems that councils take a dim view of the BOMAD giving away assets to avoid care fees and assist their children in many ways.

    Councils simply won't be content to allow the BOMAD to carry on gaily giving away their assets!!

    It would be very interesting to hear from anyone in the know about how councils would regard this 'intentional deprivation' of assets as far as the BOMAD is concerned.

    Can you imagine the hundreds of thousands of house purchases being undone as councils pursue recovery of BOMAD assets to pay for care fees!!?

    It could cause chaos in the housing market!!

    Not to say the many bankruptcies that would result!!

     My understanding is that many of the BOMAD also pay of university loans.

    Will those funds be recovered etc, etc!!?

    How far back can a council go to state 'intentional deprivation' occurred!?

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    Paul,

    Hope you are well, fellow Radio 4 listener. There was an interesting Money Box programme on a few weeks ago talking about the criteria councils use to determine whether 'intentional deprivation' has taken place.  One of the criteria was of course a judgement on 'intentional' - did the person transfer assets in the knowledge that care (& therefore fees) would be required and that the transfer would avoid them.

    There's an argument that now you've told what you have told us........LOL

    https://www.bbc.co.uk/news/business-39589083


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    Today in the news much is being made of mortgages continuing beyond retirement age etc.

    So what is to stop mortgaging up to the gills to reduce asset equity!!?

    Lenders seem to be allowing seniors to have high LTV debt which is a great way of reducing asset equity value.

    Take the borrowings in cash and hide away

    At what age subject to health being OK would 'intentional deprivation' kick in!?

    It seems to be all very subjective

    How do you prove intentionality!?

    To my mind it would make sense to pull as much asset value as you can out of your resi by 65 years old.

    Then hide the cash away.

    This to future proof access to those funds as part of the BOMAD.

    Yes interest will be needed.

    Just use the cash.

    I suppose it all depends on how much the BOMAD is intent on lending funds

    Perhaps the beneficiaries might suggest borrow as much as you can and we will pay the repayments on the BOMAD funds.

    It does raise many issues.

    But it is something that is surely going to come to the fore as the BOMAD is used to support a vast swathe of the housing market

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    Agreed, especially as it's local councils who are responsible for care costs and make the assessment of whether 'intentional deprivation' has been made - and I doubt they will apply these subjective criteria consistently.

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