Father gifting deposit and living rent free

6ft2ofloveliness

Hello All

In the next 18 months/2 years my husband and I are looking to purchase a house for us 2 and my Dad (who will be approaching 70)

We will be using his money from the final sale of his house for the deposit (approx £70-80k of the final amount). and we will get a mortgage for the rest...

Now my Dad will be living with us but rent free, can he gift us the deposit and also live in the property?

Any advice welcome..

GMS

This will cause problems as he will have an interest in the property but not be party to the mortgage.

Ensure any lender you approach is fully aware of the circumstances and in agreement

ACG

As GMS says it could be difficult.
Another option (it may not be the best option) would be to do an application with all 3 of you on. If dads income is not needed then any lender may not be too fussed about his age.

rootypooty

We have a similar situation - got told it would be difficult but actually it's fine if you go through a mortgage broker as they know who will/will not lend to you. It's definitely possible it just narrows the market. We are in the application process ATM with Woolwich mortgages - all 3 of your names will have to be on the mortgage but Woowich are willing to 'Overlook' my Dad's age and income as he won't be contributing to the payments. the lender just has to be happy that your income is sufficient and that your credit report is good.

The only other thing is having a good solicitor for both yourselves and for your dad, making sure that they draw up who owns what % and also making sure your wills are drawn up properly.