Future inheritance on present mortgage

wildballoonlady

Has anyone ever taken a gamble on on buying a home by adding to the mortgage in the expectation of paying it off in years to come from parental/in law inheritance?

I know the pitfalls are ethical, inheritance tax, long term care for parents/in law, crash in the market, illness/death of partner or self, redundancy etc all make this on the one hand a massive, risky gamble.

On the other hand there will eventually be a fair size inheritance, both sets have mortgage free large properties. Which in some ways could be harnessed to getting a family home for three growing children so each could have their own bed room.

I suspect it is probably far wiser to put these thoughts out of your mind and settle for what you have and not gamble. But I would be interested if anyone else has gone down this route.

pauletruth

oh your nasty. you are looking for people to die to fund your dreams. if you do this i hope they get wind of it and the cats home gets it all.
you should be cherishing every moment that they have left. if after they sadly die they leave money to you then you can do what you want. not before.

observations_from_a_hill

I think that post-obit loans only applied where there were strict settlement trusts - around 150 years ago.

Thrugelmir

Inheritance isn't a repayment vehicle that many lenders will find acceptable. Precisely for the reasons you've outlined.

Whose to say that the money doesn't spent on round the world cruises.

GMS

Heart warming to see the value placed on your parents!! Value being the operative word.

I would give up all of my worldly goods and limbs to spend 1 minute with my Mum, yet you seemingly can't wait to see your folks depart the earth in order to fund your lifestyle. I would give more than my limbs for my Mum to have had chance to meet her grandchildren. Having your parents is much more important than what you can get out of them.

What if they decided to do equity release on their properties in order to fulfil their dreams of travelling, fast cars, fancy dining or any other thing they fancy? How would you repay your mortgage then?

vacheron

My belief is that if you can't afford it now, then you can't afford it.

Have to agree with GMS. My mum keeps mentioning inheritance and my brother and I are trying our best to get her to spend every damn penny while they are both still in good health.

I've told them that all I will wish from their estate is a big pile of photo albums full of travel pictures, round the world cruises and her and my dad having a fantastic time. I've threatened that any money or property she sneakily holds back for us will be donated in it's entirty to the BNP!

wildballoonlady

Pauletruth and GMS I don't appreciate your sanctimonious, pious comments. You know nothing about my family at all. Not that it's any of you're business but we are incredibly close and loving. I have been so, so lucky to have such wonderful, supportive parents and in laws who are also caring loving grandparents. I would much rather my children had the love of their grandparents right into their adulthood. Sadly this will not be the case and I would give literally anything to change this. What crap to assume I'm sitting there rubbing my hands together wishing them gone. They continually offer financial help, which me and my siblings turn down. They openly discuss the legacy they will leave their children and grandchildren.

My question was - not how quickly I can be rid of parents gloat gloat rub hands - but has anyone taken a larger mortgage on with inheritance in mind. And as I already said it's probably not a good idea for all sorts of reasons.

bigadaj

I don't see this as a particularly moral issue but cannot see how this would work in practice. Many people may factor in an expectation of inheritance into their financial plans, but income is needed to pay any mortgage even if you have a final payment plan in place, which would mean a charge on your relatives home, the only benefit would be a possible slight increase in what you could borrow on the basis of going interest only rather than repayment. Probably needs more thought and sounds speculative and wishful thinking.

MoneyMagic01273

I won't judge the OP for asking this as the truth is many people probably do in some way factor some form of inheretance into their life plans. But any wise person - whilst contemplating what this could mean for them - would also plan for this to not be the case.

I would also say that I doubt hardly anyone would be comfortable (even on an anonymous forum) to step up and talk openly about how they have conciously gambled financial decisions on these kinds of assumptions so do not pin your hopes on getting very much positive affirmation here.

You will not be able to secure borrowing on the basis of expected inheretance - and yes, it is a gamble as to whether any planning you do around these assumptions will pay off.

Noone on this forum would (or should) advise you that is is wise or safe to do this. As you can see - many will also provide you with their opinion of the ethics of what you are proposing, despite the fact that I do appreciate you are asking the question as a realist rather than a cold-hearted person.

getmore4less

IME the best plan is to skip a generation.

Look at any inheritance as your kids future not your own.

The biggest risk with trying to make it your own is the lender won't lend for long enough.

Skipping the generation gets your kids set up when money is tight, you set up their kids(your grand kids) and thats all future generations set up as long as no one goes on a spending spree.

THats how the rich people did it in the past family wealth is kept in the family, problem is the newer generation lost the will to work.


Another stratagy if you want to depend on you parents wealh is to move back in with them, another stratagy the wealthy and extended families use to maximise the value of their assets.