Buying house for my child

hazyjo

But it will still be an investment for you, you will be a landlord. Your son won't be owning it, will he?

If they want to encourage FTBs, etc, then why can't you gift him the money and let him buy it direct. Obviously he won't be paying you rent though. Or you could give all/some of it as a loan/'mortgage', but that might open another can of worms (not familiar enough with the law to comment further).

btw, I agree it's not particularly fair if you're giving one a house and not the others. Not everyone feels life is fair though and that siblings should get equal money out the pot. I do however think it should be distributed evenly - my opinion though. If I found out I'd flogged my guts out to work the hours/days I do only for my mum to buy my sister a house, I wouldn't be too impressed... each to their own though!

Jx

investo

hazyjo wrote: »

But it will still be an investment for you, you will be a landlord. Your son won't be owning it, will he?

If they want to encourage FTBs, etc, then why can't you gift him the money and let him buy it direct. Obviously he won't be paying you rent though. Or you could give all/some of it as a loan/'mortgage', but that might open another can of worms (not familiar enough with the law to comment further).

btw, I agree it's not particularly fair if you're giving one a house and not the others. Not everyone feels life is fair though and that siblings should get equal money out the pot. I do however think it should be distributed evenly - my opinion though. If I found out I'd flogged my guts out to work the hours/days I do only for my mum to buy my sister a house, I wouldn't be too impressed... each to their own though!

Jx

I think I may have to go with the approach of acting as a loan/mortgage provider to my son and his family. I'm sure that this is its own can of worms though. Anyone have any idea of the legal fees of such an arrangement?

I totally agree about fairness etc with our other kids. Thats why I'm in this conundrum in the first place.

BitterAndTwisted

I'd go ahead and buy it anyway. If your child pays you rent who would know about it, and if the developer or anyone else found out what would they do? But before I did that I'd be having a very close read of any correspondence about this clause to ensure I understood what the real risks would be

DRP

BitterAndTwisted wrote: »

I'd go ahead and buy it anyway. If your child pays you rent who would know about it, and if the developer or anyone else found out what would they do? But before I did that I'd be having a very close read of any correspondence about this clause to ensure I understood what the real risks would be

100% this.

The contract/agreement you have with the developer isn't intended to cover the situation you describe with your son & family

Just do it and either no one will be any wiser, or if they do find out they won't care enough to do anything about it.

movilogo

Buy it and then ask your son to pay you cash as rent.

xylophone

Ask your solicitor to draw up a loan agreement between you and your son.

You lend him the whole of the purchase price. He repays the loan on the basis you agree. He buys the house in his own name.

If he pays interest on the loan you will need to declare it.

HB58

If you use the purchase price as a loan to your son, AIUI, you won't be a landlord and won't have to comply with the various regulations affecting LLs.

zzzLazyDaisy

Assuming you are in England or Wales the flat will be leasehold, not freehold. Check the lease carefully as some leases expressly state that subletting is prohibited.

Old_Git

the developer wants to encourage owner occupiers .
But what happens in a year or two when they decide to sell ,they can sell to a landlord for BTL .

Mojisola

investo wrote: »

The property developer says I must sign a legal declaration to confirm I will not be buying the property as a buy-to-let investor.

Any advice would be greatly appreciated.

Look at other houses that are for sale?