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  • FIRST POST
    • Beav1s
    • By Beav1s 9th Sep 17, 5:15 PM
    • 1Posts
    • 0Thanks
    Beav1s
    Relatives paying my mortgage and staying in my house.
    • #1
    • 9th Sep 17, 5:15 PM
    Relatives paying my mortgage and staying in my house. 9th Sep 17 at 5:15 PM
    Hi. My wife and i have a mortgage on our house which we have 9 years left(repayment). Basically my father died two years ago and we're moving into my parents house(paid off) to care for my elderly mum who is 87. We've had a granny annex built on the back of her house and we will move into the main house. We will split the bills etc. Our intention is for my wife's parents to move into our house and just cover the mortgage and bills. I appreciate my wife's parents will have to pay tax on the mortgage payments as we are making a gain from them paying off our mortgage and I expect we will have to change our mortgage from a repayment etc. Are there any other things we need to look into please. I work full time and my wife works part time but she will be reducing her hours to care for my mum who has poor eye sight, frail and hard of hearing. Thanks in advance.
Page 1
    • cjdavies
    • By cjdavies 9th Sep 17, 5:19 PM
    • 2,592 Posts
    • 2,536 Thanks
    cjdavies
    • #2
    • 9th Sep 17, 5:19 PM
    • #2
    • 9th Sep 17, 5:19 PM
    Links from the stick post, G_M has a few other links also.

    A Tenant's guide to renting

    RENTING? Check your LL has permission to let that property.

    Letting out your property? Top Tips from the Forum
    • Fireflyaway
    • By Fireflyaway 9th Sep 17, 5:50 PM
    • 1,182 Posts
    • 1,206 Thanks
    Fireflyaway
    • #3
    • 9th Sep 17, 5:50 PM
    • #3
    • 9th Sep 17, 5:50 PM
    I think its great you are helping your parents, a lot of folks wouldn't ! So aside from the fact you are dealing with your parents, what you are essentially doing is renting out your house? So tell your mortgage company to ensure you have permission and remember to get the correct insurance and alter the electoral register. I'd also get some sort of document drawn up to state who is responsible for repairs, are alterations allowed, what notice is required etc. Basically a tenancy agreement! Seems harsh seeing as its your folks but things change and you need to avoid disagreement further down the line.
    In relation to your wife it may be worth looking into carers allowance and attendance allowance for your mum. Depends what your wife earns and how many hours she will be a carer for.
    Good luck with everything.
    • Keep pedalling
    • By Keep pedalling 9th Sep 17, 5:52 PM
    • 3,584 Posts
    • 3,854 Thanks
    Keep pedalling
    • #4
    • 9th Sep 17, 5:52 PM
    • #4
    • 9th Sep 17, 5:52 PM
    Your in laws will not have a tax liability, you will.
    • Mojisola
    • By Mojisola 9th Sep 17, 5:54 PM
    • 28,247 Posts
    • 71,857 Thanks
    Mojisola
    • #5
    • 9th Sep 17, 5:54 PM
    • #5
    • 9th Sep 17, 5:54 PM
    Our intention is for my wife's parents to move into our house and just cover the mortgage and bills.

    I appreciate my wife's parents will have to pay tax on the mortgage payments as we are making a gain from them paying off our mortgage and I expect we will have to change our mortgage from a repayment etc.
    Originally posted by Beav1s
    Why?

    You are going to be landlords, renting your house out to your parents in law. Why would they be paying tax on the rent they pay to you?
    • theartfullodger
    • By theartfullodger 9th Sep 17, 6:58 PM
    • 8,904 Posts
    • 11,757 Thanks
    theartfullodger
    • #6
    • 9th Sep 17, 6:58 PM
    • #6
    • 9th Sep 17, 6:58 PM
    Probable mortgage fraud:

    Could be repossessed (unlikely, sadly).

    Suggest you read your mortgage terms & conditions then write to (yes, WRITE - keep copy) to your lender.
    • McKneff
    • By McKneff 9th Sep 17, 9:23 PM
    • 35,523 Posts
    • 45,721 Thanks
    McKneff
    • #7
    • 9th Sep 17, 9:23 PM
    • #7
    • 9th Sep 17, 9:23 PM
    They are not paying the mortgage.
    They are paying you rent.
    You are paying the mortgage
    No one can make you feel inferior without your consent
    • G_M
    • By G_M 9th Sep 17, 10:33 PM
    • 41,100 Posts
    • 47,242 Thanks
    G_M
    • #8
    • 9th Sep 17, 10:33 PM
    • #8
    • 9th Sep 17, 10:33 PM
    They will be your tenants, so read:

    * New landlords: advice, information & links

    from this thread here:

    Tenancies in Eng/Wales: Guides for landlords and tenants
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