Buy to Let for Relative

silvercar

See now the way I see it is, if they dont pay the rent/ ruin the house, they abused the relasionship anyway.

Agree with you if they are young, fit and healthy, but what happens if they are too old or ill to work? do you then evict an ill relative?

black-saturn

You can have a buy to let and let it to a family member on housing benefit. Theres no rules against it at all.

SaveMe2

Ems*Honie wrote: »

I rent to my sister and her family, we used a broker to find the best deal with a lender who would lend to btl/relative. We have a formal tenancy agreemant, and the rent is not mates rates.

The one piece of advice I would give is to remember that if your mum and you should ever have issues/ fall out then it does put you in a difficult position, you would have to be hard enough to evict or take court if needs be. See now the way I see it is, if they dont pay the rent/ ruin the house, they abused the relasionship anyway. I'm sure it wont happen in either of our cases, but you have to think about it.

Remember to account for your buldings insurance too, and decide who will pay the council tax.

Some useful and interesting thought. Not reallt thought about the moral side of this... but I'm pretty sure there wouldn't be any fallings out... but maybe best to consider some provsions for loss of rent etc

SaveMe2

silvercar wrote: »

Agree with you if they are young, fit and healthy, but what happens if they are too old or ill to work? do you then evict an ill relative?

Again another interesting point.. She is 65 already and only has part time work... hence the need for HB. If she became ill would the benefits recieved cover rent/mortgage etc...

silvercar

SaveMe2 wrote: »

Again another interesting point.. She is 65 already and only has part time work... hence the need for HB. If she became ill would the benefits recieved cover rent/mortgage etc...

Benfits would be payable if she had no savings. Money would be tight.

Housing benefit would be based on the reasonable rental prices in the area, assuming the home is appropriate for a single person, the benefit would have no relationship to the size of your mortgage.

cazmanian_minx

I nearly did this a year ago for my ex-husband, but London and Country couldn't find me a BTL mortgage that allowed both a family member as tenant and accepted housing benefit tenants, it was always either one or the other.

Caz

SaveMe2

cazmanian_minx wrote: »

I nearly did this a year ago for my ex-husband, but London and Country couldn't find me a BTL mortgage that allowed both a family member as tenant and accepted housing benefit tenants, it was always either one or the other.

Caz

Hi and thanks for your reply. This is excatly what I am looking for and it seems the problem would be with the lender, who obviously need to look after their own interests. I guess we will have to revert to her renting privately just not from me or sheltered housing which today she has registered for. Interestingly HB in our area would be up to £90/week for private rents and sheltered housing costs £72/week.