Buying a flat for mother-in-law!

paul_31

Hi guys,

I'm after a bit of advice really, wasn't sure which forum to post this in but it does relate to mortgages so I ended up here.

My mother-in-law (mid 50's) is currently in a housing association flat and struggling to pay her rent & bills (she has low income and is divorced with no-one to share bill costs with)

We are looking at ways to try and help her out, but rather than give her money that would be wasted on rent we are thinking of looking at buying a 1 bed flat / apartment in her area as an investment and asking her to just contribute a little of what she can towards the mortgage.

We are only just coming up to the 1st anniversary of buying our own first house (i'm 24, partner is 25) but we should be able to afford a second mortgage as it would be a lot smaller and both have good salaries.

We are thinking of looking at purchases around £70-80K and at the moment have a deposit of approx £10k.

Firstly - do you guys think this is a good/bad idea? Any opinions?

Secondly - would we be able to get a mortgage for this? If so, what sort? Does it class as BTL? We wouldn't be living there but we wouldn't really be receiving much money you could class as "rent"

I don't really know where to start looking and this idea was just an option that we discussed last night and said we would look into.

Thanks guys.

Oldernotwiser

Have you or your MIL checked whether she is claiming everything that she's entitled to? If she's on a low income she may be able to claim tax credits and/or Housing Benefit.

Conrad

A couple of lenders can treat this as residential as long as the tenant is a dependant relative.

This means you get keen residential rates.
C&G is one such.

shane42

what would happen if the op's mother in law later moved out, would the mortgage have to change to a BTL?

getmore4less

What is your current motgage and income?

shane42

shane42 wrote: »

what would happen if the op's mother in law later moved out, would the mortgage have to change to a BTL?

hypothetical question

TMSL

Depends what the clients do with the property, if they choose to let it they could first seek to lenders consent to let, which tends to be a cheaper ooption than remortgaging onto a btl mortgage

shane42

thanks
so what sort of mortgage can you get other than a BTL if a relative is going to be renting it?
thanks
shane