I had the idea of the reverse mortgage over a decade ago.
It is similar to the Sale and Leaseback scheme of the government’s that takes over properties and leases it back to the former owner till their deaths.
My idea differed in that the pool of properties would be sold as a hedge to young families looking to secure housing for their children and they make monthly contributions at present prices and the proceeds would go towards the monthly payments made to the property owners.
It would be a transparent pool and buyers would know exactly which properties are in stock and I really thought it was a fantastic idea, disregarding the morality behind it and that some would be bereft of their legacies.
Yet I also considered the event of premature death. My belief is that some form of restitution be made, according to formula, to nominated beneficiaries.
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