mortgage for over 65

holly_hobby

Some very good options by JamesD.

BTL - generally no age restrictions for the mortgagor - however you can't be party to any purchase of a BTL arrangement - and it be your private residence.

BTL - children buy, and parents rent. This turns the BTL from unregualted to regulated borrowings - of which there are a select party of BTL lenders whom will consider this.

As regulated borrowing, the lender will ensure that the mortgagors earned income is sufficient to service the mortgage (which is separate to the common BTL rule of min earned income of 25k or the like, and would inc all other finanical commitments).

Any rent payable is subject to income tax assessment, and an annual SA return will need to be made by the mortgagors re the BTL arrangement (which if worked correctly may not actually amount to any IT liability on the rental income recd from Mum & Dad - but nevertheless an annual submission will still be reqd by HMRC).

Disp of the property by the mortgagors (assumed following 2nd death of parents) will be exposed to a CGT calc - the liability dependant on several factors, and net of all permitted allowances/reliefs at the time of disposal.

Children could pch property under dependant relative scheme - again back to affordability based on children and we have the same CGT exposure on disposal (which to be fair would be there if parents owned and bequeathed to issue under their Will).

Shared ownership, 25k may purchase an equittible share of a HA older person property (member of my family have just done this with a 25% with a similar amount), with monthly rental & service charge - although it will never wholly be theirs, they will have longterm residency assurance.

Suitability is assessed by the HA (e.g - in my personal case, they HA had a min age of 55 (due to age related housing (bungalow), also a demonstrated financial requirement for social housing via a Fin statement and credit record check was assessed, this may differ with the HA, type of housing and evaluation requirements).

Of course the location of the HA S/O properties may not be favourable to them .... but horses for courses I guess.

If they wanted to enter into a scheme whereby they effectively pch the whole property within a set period - back to mge suitability.

So, here we have considered :-

1. Regulated BTL via children (full affordability assessment of mortgagors)
2. Pch of property by children under dependants relative scheme (full affordability assessment of mortgagors)

3. Shared ownership via a HA (% of equittible value purchased, with a lifetime tenancy agreement effected with the HA for rental aspect)

4. Shared ownership with a builder type scheme - with full equity pch by parents of property over time - back to requiring finance to be sourced.

Good alternative suggestions James .... hopefully the OP WILL come back at some point, and give a response to the efforts and comments of all !!

Holly

GMS

Simon_gloster wrote: »

Mainstream, residential and new business? 0% chance.

Sub-prime, GE, Blemain etc possibly until aged 80 on a resdential new business basis.

Very unfair to the OP to go quoting lenders especially when the information is wrong.

Blemain would be almost suicidal given their rates and GE will not go beyond age 70.

OP this is not a case which is straight forward so please seek professional advice. Applying to lenders without a proper assessment and understanding of criteria will potentially cause heartache and cost money

kidmugsy

holly_hobby wrote: »

I assume the OPs parents feel renting is "dead money"

I agree with your implication: the "dead money" attitude is perilously close to a "brain dead" attitude.

CBR600F_2

Money is a medium of exchange and a store of value. The most common kinds of money; fiat and precious metals are dead. I deal in slaves and cute widdwe animuws, both of which are live money.

By the way, I've taken receipt of a batch of slaves if anyone's interested. They look strong. Like they can chop a lot of wood. Especially the one who is giving me the evil eye all the time, and who I took the shiv off. I call him Simon. Some of them will love you long time, if that's what you're into. I don't judge.

Call me for a quote. My prices can't be beat.