buy to let mortages -living in own property?

dimple123

Ok so my 2 siblings and I are thinking of putting all our money from trust together, as a deposit to buy a property. We are thinking of buying to let as an investment. However I would be living there with my partner and child and paying all the rent for a few years. I'm trying to find out if this would be allowed as I would be part owner. Obviously I would pay all the rent e.g if the property was 500pcm I would pay all of it, put it into a joint business account. So my share of the money would pay all the mortgage plus more, and then they would obviously take their share out of the end of the year. I'm not sure if that make sense, i'm not very good at explaining! Anyway do you think this would be allowed? thanks.

bigadaj

Won't work as a buy to let, and you will probably have problems with a lender if there are multiple people providing deposits and there are no absolute gifts.

Post some details about deposit and house value and it might trigger some ideas but can see one currently.

dimple123

hi yes that's what I was worried about. deposit would be £45,000 and we would be looking at getting a property no more than £100,000.

lessonlearned

You could might be able to form a limited company. You and your siblings would be directors with shares, the £45k would be classed as directors' loans.

If you lived in the property you would have to pay rent at the full market value to the company. It might be better to let it out commercially and then you rent something else. It would probably be more tax efficient.

dimple123

lessonlearned wrote: »

You could might be able to form a limited company. You and your siblings would be directors with shares, the £45k would be classed as directors' loans.

ahh thanks, this is something we've been discussing so that's what we'd probably do. Also None of us own any property at the moment, they're both students and me and my partner don't earn over £25,000. Not sure if this would be a problem either...