BTL Deposit Question - Parents Home

Sleepy_2

My parents (Dad 62 - Mum 58) are currently trying to sell their house (£140,000 Mortgage free) to release some money as they have finally had enough of the long years of poverty. Both parents do not work due to health issues.

The plan is that once the house is sold, they will invest the money "safely" and they will find a flat to rent. Interest earned on the money from the sale of the house should pay the rent, there will be money to buy a car (under a £1,000) have an occasional holiday (caravan in Scarborough), and generally not always worry about bills, etc.

They are hoping that this money, spent carefully, should bring a little happiness for a few years. Their pension is only around the corner, and with careful planning, the money from the house should last a long time.

Unfortunately, even though the house is well built, everything has been done, in good condition, needs no work, etc... it is an ex-council house, on the outskirts of town and has not yet received an offer over the last 3 months.

My question is this.... would it be possible for me to buy the house with a BTL Mortgage ? (I have just bought my own home) - the problem is that I do not have a deposit, however, my parents have advised that they are happy to lend me the money from the house. Is this catch 22 ? or would the Mortgage Company be prepared to use money in the house as a deposit ?

My parents will pay me rent equivalent to the Mortgage, and with my brother who still lives at my parents home paying a little rent, the sums "appear" to add up.

I know that there are a lot of family related issues with doing this, but my question is really regarding the BTL Deposit.

Sleepy_2

Hi, can anyone help me out with this question please ?

vishpatel

makes sense to keep it in the family...........If you think house prices are likely to appreciate that is. If, like me you don't, then its worth selling it to some other sucker. Theres usualy only one reason why a property doesn't sell. Price.

Sleepy_2

Hello again - can someone advise please if it is possible to use the equity in Parents Homes as a BTL deposit.

Thanks in Advace !