Buy to Let - Renting to Parents Advise

NearlyThereUK

Hi

I am having trouble with getting a mortgage, and I think it is because I am being honest!

Here is the scenario.

• Parents house almost payed off (30% left).
• One parent disabled, other due to retire November 2015 who was paying mortgage.
• I would like to take on the remainder of the mortgage, extending the terms, and private rent through housing association to my parents.

It is the final part that I find stonewalls me with mortgage companies.

Some have gone off the record to suggest I omit the renting part out when applying, however I do not want anything coming back and biting me in the backside at a later date when I approach the housing association.

Has anyone managed to do this, is it OK to do so? And if so, some advise would be greatly appreciated.

Pixie5740

Where to even begin with this one?

You want to get a mortgage for 30% of the value of your parents' home? So does that mean your parents are effectively gifting you a 70% deposit?

If you want to let a property to family then you will require a regulated BTL and not just a regular BTL mortgage. Have you spoken with a broker about your requirements?

Where does a housing association come into this arrangement? Are you going to let the property to a housing association who will then let it to your parents? You need to explain what you mean by this as at the moment I suspect that what you really mean is housing benefit and not housing association.

theartfullodger

Most B2L mortgages will exclude you renting either direct to family or via a housing association to anyone.

A normal residential mortgage will exclude renting the property to anyone & you could get repossessed if you do.

NearlyThereUK

Yes I am getting 70% value gifted.

Came on here for advise not for a pretentious response.

But in a roundabout way you gave it to me. Broker, regulated BTL mortgage. All I needed to know. Thanks.

Pixie5740

NearlyThereUK wrote: »

Yes I am getting 70% value gifted.

Came on here for advise not for a pretentious response.

But in a roundabout way you gave it to me. Broker, regulated BTL mortgage. All I needed to know. Thanks.

????

I asked the question about whether you actually meant housing benefit because it's an important point. If you do in fact mean housing benefit then what you're proposing sounds like a contrived tenancy which means the council won't grant housing benefit.

No need to thank me you rude little person.

[Deleted User]

lol.., here we go again.., another 'child' wanting to take on their parents house at an enormously discounted rate, not forseeing or willing to forsee the potential problems for them or their parents.

And when reminded, however politely = attitude!!!!!!!

The more ignorant, the more attitude lol.

Wonder if this one will post again when they realise parents won't get HB in this situation. they obviously intend to get rent somehow.

Maybe the ones who do this without attitude actually do their own research rather than post on here????????