Buying with daughter term: is it possible

mandarama

Informed advice please.

I am 60 and about to become a full time self-funded PhD student. I have pensions of 14k pa and 120k equity in my property. (My current mortgage has 10 years remaining and I owe £45k on it). I was originally looking to downsize and lose my mortgage - just about doable by moving to my daughter's (my neighbouring) town. My current mortgage is £500 pm, my other household outgoings £200 pm

My daughter is 35, a single parent to 3 children, earning 10k pa in a secure job.
She currently pays an unofficial rent of £300 pm to her father (my ex husband) to live in what was the family home. Her other household outgoings are £300 pm. Obviously the cost of 'keeping' herself and three children in food, clothes, entertainment and transport are in addition to this. She receives Family Tax Credit. (£1600 total goes into her bank account each month.) She is now on a career path so her income will increase in September, but her Tax Credits will reduce (we think in equal proportion).

If we bought a house together, she would get on the property ladder and I would effectively be mortgage free, as she would pay the mortgage (additional costs to her being funded by the reduction in her contribution to the household bills)

To buy a (large enough) property at £170000 I would pay £10,000 to clear my debts/pay my initial college fees, set £10,000 aside to pay house purchase fees, putting my remaining £100,000 as a deposit; my daughter would then need a £70,000 mortgage over 25 years. If this was deemed to stretch her finances too far, we might be able to do 110k / 60k split, respectively. Would this be possible?

I've read on other threads that any mortgage must have both buyers named and will only, therefore, be calculated on the upper age of the elder. I can see this would dictate a limit of 10-15 years which would not be affordable for her.

I wonder if there are ways around this:
Would it make a difference if we were 'Tenants in Common' with my owning the fully paid ratio and she responsible for the mortgaged portion? Or could we buy with a two-stepped mortgage, with mine being £20k over ten years and hers £50k over 25 years?

Alternatively, can I sell my home and 'lend her' the 100/110k deposit, either as a percentage stake or with no surity, returnable only on the sale of the house. I would be happy to have a legal document raised to that effect. I would then live in the property as her 'guest', trusting that she would not render me homeless! Perhaps a 'guaranteeing a home for life' clause could be added to the 'loan' document.

I cannot see how else my daughter will ever get on the property ladder. It would be better for all of us to 'live in common' providing stability for the children and security of care for me in my (later) old age.