2nd house/sitting tennants problem

clutton_2

all these excellent questions will be ones that your new solicitor will ask - so it will be wise for you to print them off and get your sister to find out as many answers as possible for the visit to the solicitor

silvercar

The usual (if there is a "usual") way to buy a home for elderly relatives to live in rent free, is to buy it on a residential mortgage. The same as if you bought a second home. Lenders don't like BTL mortgages with relatives as tenants as landlords are reluctant to evict relatives who don't pay the rent. So usually you would get a residential mortgage based on your income and then you could install relatives rent free.

There are inheritance tax implications in buying relatives houses below market value and in giving rent free accom to relatives. there are also CGT implications foe second homes which are decidely worsened when houses are bought with relatives living rent free in them.

I hope professional advice was taken at the time.

puddy

if husband has done a runner, presumably he doesnt need the matrimonial home to live in, therefore, your sister can for the time being, move back to the matrimonial home, rent our her 'own' home and get some money coming in (although as she is married its not actually 'hers' alone)

Fredolsen

jenner wrote: »

if husband has done a runner, presumably he doesnt need the matrimonial home to live in, therefore, your sister can for the time being, move back to the matrimonial home, rent our her 'own' home and get some money coming in (although as she is married its not actually 'hers' alone)

Hi Jenner

The original matrimonial home is not in the equation as it was rented and obviously when they split up ages ago they both stopped renting it (if that makes sense.

Many thanks.

Fred

puddy

oh i see so there are 2 purchase properties, her 'assett' home, which she is mortgaged on and currently living in and the home she bought on a mortgage for her in laws to stay in.

i would also imagine that there might be room for emotional manipulation here too, its their son who has run off and left them in the lurch, not being able to cover the mortgage on the property that their daughter in law bought for them to live in, therefore, they should understand that they cant continue to live there because their son has gone back on a verbal agreement.
whether thats likely to work, we dont know

how/why did she lose her job? any chance of her starting work again so that she can finance the 2 mortgages?

why doesnt her and kids move in with the in laws? (long shot i know)