Pls help on getting house from my mum with mortgage

Yorkie1

If you get a residential mortgage, you are telling the lender when you apply that you will be living there after purchase.

If you know from the outset that it will be rented out then this is mortgage fraud. If your advisor has specifically suggested that you lie to the lender on your mortgage application then I'd be dumping him pronto!

If you do not already own a property, then the number of lenders who will provide you with a BTL mortgage will probably be reduced.

There is a saying that you should not rent to family or friends - it's a recipe for disaster if anything goes wrong. So you are entirely correct to do things formally - tenancy agreement etc.

If pension credit is a means-tested benefit, then your mum will be treated as if she still owns the equity in the property if she gives it to you. This is what 'deprivation of assets' means.

best-of-the-best

Finally I managed to get some of my questions answered after sleepless night I had yesterday since I found a lot of things I was unaware of the law.. So we are going to get in writing for the renting the house from the lender.

Also my mum still going to gift me and we are going to mention on the form that she had done that. Also going to mention that she has been living with me for last couple of years and I never charged her a penny. Even I helped her to pay mortgage repayments since she had lost some hours at work, so she gave me the house in return for the all the favours over the years, and also now as she won't be having any jobs so it will be difficult to pay the remaining mortgage so she passed on mortgage as well.

So after that its up to them to decide her application but at least we are doing everything by the law.. I am so glad that I came in here for help so I got the very important information.

The one question I wanted to find out that what is the solicitor costs involved, the quote I could get is £800 including all searches and land registry bit from my side and £550 from my mum's side. Also £315 valuation fee from lender.. No arrangement fee, mortgage exit fee is £265. Do you think that's reasonable??

However I couldn't thank enough to the members but thanks again so much for your contribution...