Gifted mobey from parents used to buy property they can live in.

pugsyts

Hi

Can anyone suggest a mortgage provider willing to help. Or suggest advise.

My parents have been trying to sell there home for a while with no interest/offers.

They can get a buy-to-let mortgage on the property (already accepted) but still won't have enough capital from that mortgage to buy a new property & retire.

Iv suggested gifting me some cash and I will buy a property (using the gift money as deposit) and mortgage the rest. I will own the house. Over time I will pay the gifted money back.

Are there any lenders willing to accept me?

I'm aware you can own a second home (I own a house already) and let
dependent relatives live in it.
The term conflict of interest has been mentioned but I will own the property.

Thanks

pugsyts

Or offer alternatives but with the same outcome..

DVardysShadow

pugsyts wrote: »

... Over time I will pay the gifted money back.

They will of course owe you rent. So not paying you rent will enable them to recover their, ahem, gift.

pugsyts

DVardysShadow wrote: »

They will of course owe you rent. So not paying you rent will enable them to recover their, ahem, gift.

Thanks for you response, but no they will not have to pay rent as you can own a house that a dependent relative live is.I.e my parents.

holly_hobby

Lenders will not accept a gifted deposit that is made with reservation (ie in exchange for an interest in the property, or requires repayment by the mortgagor)

Obtaining a buy to let mortgage for the occupation from outset of family, changes the product from unregulated to regualted which is a seperate issue for the lender, and may cause additional placement problems. Notwithstanding that there will be no rental income derived from the "tenants".

What we are really talking about is a 2nd property, your income will have to be sufficient to support all of your borrowings inc the 2nd mge for your parents residence - and the deposit will have to be confirmed to the lender as being gifted without reservation. (whether you "subsequently" come to a personal arrangement (post completion) re its repayment could be a consideration).

Hope this helps

Holly

pugsyts

Hi Holly
Thanks for reply
Yes my income can cover all costs on both my house and 2nd home.
Will the provider not want to know what I'm planning on doing with the occupancy of the 2nd home, so surely i would have to tell them I will put my parents in there?!! Rather than keeping that until post completion.

GMS

You will also encounter problems with lenders where the deposit is being provided by somebody who will reside and have no interest in the property. Before applying speak to the lenders as this could cause serious issues on completion.