advice re buy to rent for son and partner

BigAunty

Yes, Tiger Eyes makes a good point about how personal relationships can undermine the formality of a the business relationship and the recipient can ask for and expect favours that a typical tenant would not even entertain, the commercial side can get undermined.

Consider 'Hey, mum, bit short this month, do you mind if I skip the rent this week and pay a bit more next if I can afford it' versus the reception from saying this to a letting agent or landlord who is likely to say 'any breach of the tenancy agreement at any point in the tenancy is likely to result in me serving you notice'.

Debt strewn tenants don't usually have much expectation to get a hand up onto the housing ladder and the attitude that led them into debt, unless curbed, will lead to behaviours that mean the rent may not be the priority bill, particularly if they feel some kind of greater security of tenure there 'cos The Parent is so nice and understanding.

"He wanted to move somewhere else but said with new deposit and credit checks it would come to about £1,500." It's a large sum but doable to save in x months time given they earn a good income and they should be incentivised by the current state of the property.

Someone motivated to save this (without access to the Bank of Mum or Dad) would take steps to increase their income and decrease expenses (i.e. draw up a budget and stick to it). Get them to download the MSE budget planner, and work through the site to see where they can slash their outgoings. Also, post on the Debt Free wanabee board so the posters there can review their expenses and current debt repayment scheme to suggest improvements there.

Have you thought of making your offer conditional on them fully paying back their debt and building up a nest egg (towards moving expenses, furniture)? Yes, they would have to defer their gratification but a history of getting into debt when earning a decent salary does indicate a tendency to be impulsive and failing to plan. I'm assuming that as they have debts, they may have little or nothing in the way of savings and again this lack of contingency can quickly lead to rent arrears.

Yorkie1

Bear in mind that this will be a regulated BTL (because more than 40% occupied by family), which will restrict somewhat the lenders who will lend. This is a job for a mortgage broker who specialises in BTL and not for the EA's tame advisor.