Lookiing for advice/info. House buying muddle

Pammy

Hi,

I am looking for advice on a number of issues.

I purchased a property to renovate with my partner over two years ago. It was on a mortgage. When we kicked off the process my father took ill and I cared for him at my parents home until he passed away this year.

After my fathers death we were in a real bind about the house we purchased as I wanted to move my mum in with us but the house we purchased was not big enough. So we planned to port our mortgage and sell my mum home for a new property.

We persevered in doing it up. The opportunity for a redundacy came up at work so I took it with a rather grand pay off of well over a years wages. I planned to focus on the house and then go back to work.

But the week I left my mother had an accident. I am now in a situation where I care for her at her home.

Although we are covering the mortgage. I don't believe we will now be able to port it.

So how easy is it to change to a buy to let? Is that like a new application?

The other thing we was thinking was selling my mums house and then buying a new one. Would she be able to put me down as owner or part owner?

I'm hoping in a few months I can get adequate care that I can at least work part time again.

I just feel really confused about what to do.

Luna75

Hi Pammy, sorry to read about your situation, you've had a bit of a time of it!

If you wanted to keep the current property & let it out, you could speak to your current mortgage company and discuss getting a "consent to let" on the existing loan. They will probably add 1% to your mortgage rate but thats no problem if the achievable rent more than covers it. Alternatively, if you're not in some kind of fixed rate or termed deal you could look to remortgage to a decent buy to let mortgage - a lot of BTL lenders look at the figures of mortgage cost against achievable rent rather than your income.

If you want to sell your mum's house and buy one in both your names that shouldn't be a problem but I would seek some advice from an IFA - and there's nothing like asking friends and family for the details of ones they use/trust etc.

Hope that helped a bit & good luck with your decisions

tyllwyd

One thing you haven't mentioned but which might affect your eventual decision - are you an only child?

Pammy

Thanks for the reply.

Yes I do have a sibling and want to ensure that everything is fair, my mum does as well. They live abroad and not in a position to help, not their fault. I am just trying to find a workable solution to meet my mums needs and keep her with me.

My mums is large and expensive to run and needs modernizing to meet her needs. One other option to speed things up is that we sell her house. Buy a new house and then when things with me are sorted I buy the house back off her. It just feels really complicated.

I should speak to an IFA as suggested.

Fire_Fox

I don't understand what the complication is with your mother's home - why do you want/ need to be part owner? Are you intending to put money into the property or hoping to siphon some of her capital off to protect it from care home fees? Why do you want your mother to buy a place and sell to you? With respect it sounds like you are making it more complicated than it need to be.

Have you or your partner ever lived in your own property? Is there likely to be any capital gains? If so you *might* have difficulties with the Inland Revenue, which may be made worse if you do end up letting the place out. You would need to demonstrate to the IR that you intended the place to be your main home.