A house for my parents

Fennella_KW

Sounds like a good swap.... but seriously

My sister and I would like to look into helping my parents by a house. Mum and Dad could afford a deposit but they wouldn't be able to get a mortgage over a term which would make it affordable. My sister and I could. The plan I have would be for my sister and I to take out the mortgage then Mum and Dad would pay the repayments as 'rent'. Obviously eventually, my sister and I would sell the house to settle the remainder of the mortgage or whatever.

I'm after some advice on a good way to go about this and any possible legal/ tax considerations.

Thanks in advance!

HB58

Are you ready to be a landlord? Family or not, there are obligations that cannot be avoided.

Fire_Fox

Welcome! Well worth running an advanced search, these issues have come up many times. Who are you intending to have on the deeds and on the mortgage? Are you sure you can get a mortgage that will permit letting to family? Most lenders dislike this.

If your parents pay rent you are landlords, you will need to register for income tax and comply with ALL the relevant legislation (loads). Who is going to pay for repairs and maintenance? Have you considered what happens if you or your sister fall ill or are injured, get made redundant and cannot work? You may not be able to pay the mortgage and/ or may not get means-tested benefits due to the extra rental income.

Fennella_KW

Many thanks HB58 and Fire Fox for your replies. I'll certainly do some searching on the forums, I had supposed that this might be a complex issue so giving me a some pointers on where to start with the factors I need to consider is most helpful.

Best Wishes