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I would say a lot depends on your IHT
If you are effected by IHT debt at death and retirement can work in your favor
Your estate will pay less IHT
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
So at the moment that £150k debt is bringing in £300pm?
If so, is the property worth keeping?
" He refuses to get stressed to pay it off and now that BTL mortgages can be extended to 80 why bother?! "I wouldn't rely on that being set in stone. Some lenders are more flexible than others but there's no guarantees what your banks position will be in 30+ year!
``He refuses to get stressed to pay it off and now that BTL mortgages can be extended to 80 why bother?!``
I agree . Its just a state of mind . Some struggle with the concept . Mainly I think because the generation before always a paid off their mortgage so the idea of still having a mortgage at 80 worries them . But if you have a decent portfolio it doesn't matter nearly so much . As long as there is a plan at 80 then sticking with IO sits well with me .
But at 80 I may have 20 years to live still so I either extend again ( if the products are still there then ) or i pay it off or sell . If I am not ready for a care home then ( and lots of 80 years olds are not ) then I must have a strategy still because I dont want to be homeless at 80 . My own plan is to extend again if possible or sell a couple of BTL`s to pay it off when the time comes if I cant extend . But until that point I enjoy the rental income from the others for the intervening years as part of my day to day living fund .
Jonathan Clarke. http://www.buytoletmk.com
Cab driver was I assume talking about his own residential mortgage - and although he can service the current IOM at £100 pcm he is effectively betting that interest rates will stay low for next 20 plus yrs - as well as having a good pension income to service an enforced change to a full Repayment mortgage in future.
Latter will be costly as he gets older and available term reduces.
Yes if he has lots of equity he could downsize - but if he is in SE and wants to remain there he will seldom find anything desirable for less than £300k - plus all transaction costs.
If you do pay the whole mortgage off however, (as long as you get the right deal) In the future, you could always use the equity to buy more properties... But as said above, inflation will help you to gain in the long run if you don't.
I think there are lots of 'ideal's' but once you have decided on your long business term plan, and see that its working, stick with it
Financial Consultant working with Property Tribes Financial Services.
Always cover your debts, don't leave them for your loved ones to pick up. Ask me how - email@example.com
Slowly working towards financial freedom