Retirement Mortgage

slondon1979

Hi All

My dad is retired and owns a property with no mortgage as all paid off, it is worth just over £500000. he has considerable savings and receives a private pension as well as the state pension. He is trying to find out if he can get a mortgage even though he is retired in order to buy a house and allow me to rent it from him.

Doe anyone have any useful ideas or suggestions? Any received would be great

Thanks

kingstreet

Speak to a broker.

If he raises the money on his own home, the affordability will be based on his personal income and the term on the lender's maximum, with one or two lenders offering upto age 90.

If he raises the money on the target property, this is a "regulated buy to let" as it will be let to a relative and there are very few lenders left offering such products.

Limited options and hard work either way.

slondon1979

Thanks for that Kingstreet. I did have a chat with a broker last week and he said that if he went down the buy to let route then it didnt really matter what he charged rent wise and to whom as long as the mortgage was getting paid off each month.
If me and my dad apply for a joint mortgage would he still be able to use his income and property as his part?

kingstreet

A joint mortgage on what?

slondon1979

A house but instead of him buying it alobe we could both buy it, so i would live in it and we split the mortgage payments between us.

kingstreet

A joint mortgage on the target property would be a second home for him, but your main residence?

In which case, affordability would be based on both your incomes, but the term limited by his age.

Why don't you set out your circumstances and what you are trying to do and see what we can come up with for you?

slondon1979

hi kingstreet
is that something we could do away from here perhaps as wouldnt want to list personal info on here.

kingstreet

No. Unfortunately, only with a client relationship and that would require you to be in our area.

I suggest you seek out a broker in your area and sit down with them. Let them ask the questions they need and get the right answers.

Proper planning prevents p*** poor performance, as they say.