joint or buy to let?

jimmy_stewart

Daughter wants own home but can only get mortgage for 50%. We can extend current loan for other 50%. Other option is we get bigger loan and buy property in our name and rent to daughter.

This way rent would be income but I assume we could claim some tax relief against related costs.

Therefore question is joint or buy to let and what are the advantages/disadvantages of each option?

Thanks

dunstonh

If you buy to let you also have to consider the legal liability and the letting requirements. You would also need to consider capital gains tax when you come to dispose of the property. You could filter that into the rent your daughter pays but chances are the rent ends up being around what the mortgage would cost her.