Taking on buy to let to help my mum

Harimiller

My mum's landlord of 20 yrs is looking to move abroad and will be issuing some form of 60 day legal notice for her tenancy so he can sell the property (has two flats) as a freehold unoccupied.

She's nearing 60 and disabled so clearly quite distressed by the idea of leaving. The only way for her to stay in situ would be for me to purchase the property with her as a tenant.

Her rent would cover the majority of the mortgage but I have a large private mortgage of my own. Would this be possible by a buy to let mortgage?

princeofpounds

Typically lenders will require a certain amount of coverage of the mortgage by the rent, it sounds like you are stretching here though I'm not sure of the ususal coverage amount.

If your mother is receiving housing benefits you may also have to ensure that the tenancy is not 'contrived' i.e. set up to direct her housing benefit towawrds you on favourable terms.

hazyjo

Doubt the mortgage company would permit you to rent to family. If she's receiving benefits, it's probably doubly unlikely.

Would you have at least 25% to put down, and the income to fund/get the two mortgages?

Can't she just rent elsewhere?

Jx

xylophone

In view of her age and disability, have you approached the local council/housing association to see if any assistance would be available?

Kynthia

I doubt this situation would be considered a contrived tenancy as the tenancy already exists it's just the landlord that is changing. The difficulty is when it looks like family members were only charged rent when they were eligible for LHA. However a buy to let mortgage usually requires a low LTV percentage so you would needs significant deposit. Also the rent would need to be approx 125% of your mortgage payment. As said above, many lenders do t like family as tenant as landlords are reluctant to evict if necessary, but it's not impossible.