flat for mum dilema

gel_p

hi all, a new user here with a problem. my mum needs to move to a retirement flat, but cannot fund it. However i can just about fund it for her, but would need to mortgage 60% of it so in the main the flat will be in my / my wife's name. That's not an issue for all concerned in the family (mum included) but am i going to have tax implications / issues as it may then be listed as a second home for me? I do not want to list it as a buy to let, as it is not, but does this mean i will have some form of capital gains tax later on? My mum will own around 30% of the property with the meagre funds she will gain from her present flat once the equity release company are paid off (long storey).

going to do it as mum's needs are over and above financial issues, but would be nice to have some advice on the best way forward.

Thanks

Jimbo1976

Lenders like Halifax are happy to give mortgages for dependent relatives as long as you can afford it and any existing commitments you have at the moment, so you should not need a buy to let mortgage.

As to tax treatment of deposit etc, I think its best to talk to a solicitor but you are right to deal with this now when it is all being set out.

It might be that you have to guarantee your mum's mortgage if the T&Cs on the new retirement flat don't allow anyone under the age of XX to buy, but it should be possible.

I would speak to a mortgage broker and they should be able to sort all of this out for you