Renting to family member

SRoberts

Hi there,

I am in need of some advice

I currently rent out three properties on a btl basis.

My mother who is mortgage free is finding her home unmanageable and wants to move into one of my properties that has recently become vacant.

We have found someone to rent her home already. They would be paying her the same amount of rent as she will be paying me.

She would like to move into my property asap but I have been told that I am not allowed to rent to a family member?

Does any one know what the implications are?

Do I need to advise my mortgage lender?

If I do not, will there be repercussions?

If my Mum moves in, do I treat her as a tenant and have to have a tenancy agreement/landlords insurance etc?

Do I have to declare this on the tax form?

Does my Mum have to declare her extra inicome, even though she'll be paying it straight to me for rent?

Or - do I need to remortgage to a resident mortgage.......

Please help!!

Thanks

koexelek

A lender will not knowingly set up a new buy to let mortgage if your intention is to put a relative into it, but i don't know how they would view this.

I'd tend to think they would rather you have a relative in it paying the mortgage for you than having it empty and you not being able to pay it.... but common sense has gone out of the window where a lot of lenders are concerned these days.:rolleyes: