We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
We're aware that some users are currently experiencing errors on the Forum. Our tech team is working to resolve the issue. Thanks for your patience.
Buying parents house and renting back
Comments
-
... and finally, the cherry on the top will be trying to find a lender willing to accept her continuing to live in the property after a concessionary sale.
This is fraught with problems.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Can't she either downsize, or can't you and your sister give her the extra money she needs each month until she gets her pension?
Good points both.
While you're at it, get a pension forecast for her so that you can see whether to make some top-up payments for her.Free the dunston one next time too.0 -
kingstreet wrote: »... and finally, the cherry on the top will be trying to find a lender willing to accept her continuing to live in the property after a concessionary sale.
This is fraught with problems.
The chocolate sprinkles on top of the cherry will be at the end of it the OP will have a 20-30% LTV regulated BTL with the deposit and over payments all financed by the new tenant.
I assume the broker will make more in fees that the lender will in interest!"Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!0 -
How would she pay the rent once she retired? She would never qualify for housing benefit as long as you either of her children own the home.0
-
This really does have a lot of downsides:
- finding a lender who will accept the previous owner remaining in residence post-completion
- deprivation of assets, which means that mum will be deemed to possess the full market value of the house and thus impact on means-tested benefits
- mum unable to claim housing benefit anyway because she formerly owned the property
- mum having no security of tenure; the house becomes OP's property and thus at risk if OP gets into financial difficulties or marries / divorces
- OP becomes a landlord, with all the legal duties and responsibilities associated with that.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards