interest only mortgages

storeton

I suppose this problem is going to occur a lot more times,
My parents interest free mortgage needs repaying in 4 years time when they reach 65,
They are not in a position to repay the £180k owed(value of property £250k).
They accept that the house must be sold.
My question as a family of three siblings,all gainfully employed,can we buy the property possibly on a buy to let mortgage and rent it back to my parents
How much deposit we we need
thanks for any information

Yorkie1

It's likely to cause problems:

1. Lenders don't like lending where the former owner remains in residence because it's far harder to repossess if needed.

2. This would have to be a regulated BTL mortgage because family are the tenants - fewer products around.

3. I believe (and may be corrected by others on here) that sale and rent back is effectively not permitted under present rules.

https://forums.moneysavingexpert.com/discussion/4793928 is a useful thread from someone whose parents are in a similar predicament.

Kynthia

Yorkie1 wrote: »

It's likely to cause problems:

1. Lenders don't like lending where the former owner remains in residence because it's far harder to repossess if needed.

2. This would have to be a regulated BTL mortgage because family are the tenants - fewer products around.

3. I believe (and may be corrected by others on here) that sale and rent back is effectively not permitted under present rules.

Apologies if I'm completely wrong but would one/both of the parents being on the joint mortgage resolve these issues? As an owner would be living there it wouldn't be a BTL or 'sale and rent back'. I can see there being an issue with the age of the parent, however being just 60 does give more leeway than if they were in their 70s.