100 year mortagages?

Alan_M_2

Guy_Montag wrote:

Do you not need permission from your mortgagee to carry out major works to your dwelling in case you reduce the value?

How would you access the capital increase & how would the capital increase anyway?

My response was to the benefits of owning, the mortgage company are usually quite happy to go ahead with anything approved by planning as far as I'm aware....

Capital increases could be released by remortgaging or downsizing, just as many people currently do. Have I missed something obvious here?

Guy_Montag

Alan_M wrote:

My response was to the benefits of owning, the mortgage company are usually quite happy to go ahead with anything approved by planning as far as I'm aware....

I'm sure I've heard of someone getting into trouble for !!!!!!ing up their house with "renovations" & the mortgage company making their life difficult. But I can't remember the circumstances.

Capital increases could be released by remortgaging or downsizing, just as many people currently do. Have I missed something obvious here?

I think I put that quite badly, what I meant was: where would the capital increases come from? After all on your death (say after 50 yrs of mortgage payments) the property would probably end up in the hands of the bank, who would buy into a system like that. Oh, it's just like renting. !!!!!!!!.

danster

thanks for your comments guys. helpful as always. it sounds like noone here thinks that we're going to see 100 year morgages. but somethings gotta give? surely houses (even ex-council and flats) arent going to be solely for the rich? or is there going to be no such thing as owning your own house because noone can afford to pay it off within their life time? hhhmm....

lynzpower

I think we in the Uk are a hell of long way from this.

As the very basis of debt in legislation is the consumer credit act among others. If you havent signed or otherwise ( electronically signed for example) to take on the debt, then you are not liable and you cant be chased for the payment. The liability remains with the person who agreed to the debt, not some poor soul who got lumbered when someone fell off thier perch.

I just cannot see how this sort of cultural shift could happen here.

lynzpower

danster wrote:

thanks for your comments guys. helpful as always. it sounds like noone here thinks that we're going to see 100 year morgages. but somethings gotta give? surely houses (even ex-council and flats) arent going to be solely for the rich? or is there going to be no such thing as owning your own house because noone can afford to pay it off within their life time? hhhmm....

dont forget, us little englanders are anc anomoly in europe, particularly our neighbours in scandinavia - very few of them own - most rent. Its the norm- they think we are very curious for being so obsessed with "owning"

Alan_M_2

Guy_Montag wrote:

I'm sure I've heard of someone getting into trouble for !!!!!!ing up their house with "renovations" & the mortgage company making their life difficult. But I can't remember the circumstances.


I think I put that quite badly, what I meant was: where would the capital increases come from? After all on your death (say after 50 yrs of mortgage payments) the property would probably end up in the hands of the bank, who would buy into a system like that. Oh, it's just like renting. !!!!!!!!.

The idea of these 50, 70 or 100 year loans is they are assuming exponential growth similar to what we have seen over the last 30,40 or 50 years. So the mortgage as a percentage of the property value in say, 30 years time might be minuscule.

Obviously the average house price in 30 years time will be in the region of £5 million or so

chant1l

Errrm google of lifetime mortgages should pretty much give you the answer.....

Alan_M_2

chant1l wrote:

Errrm google of lifetime mortgages should pretty much give you the answer.....

Are you referring to Equity Release?

Which is not what this thread is getting at.