My mum buying my flat as buy to let

Pixie5740

Have you tried to market the property? You don't have to pack up your business in order to sell.

I ask as I think your mother will struggle to get a BTL mortgage without a large enough deposit and has already been rejected by one lender. Does she have a mortgage broker? What does her broker think her chances are?

G_M

Sounds to me like

* mum has not large enough deposit
* mum is paying above market rate
* mum is selling to family
* you don't mention mum's income
* you don't mention the expected rental income, or mortgage cost

Lenders can turn down her application for any one of the above. Additionally

* mum has no real interest in being a landlord
* I suspect mum has no understanding of what is involved (see below)
* mum will make no money from this (especially after tax etc - you do know she'll be paying tax on the rent?)

Is there anyone that could gift her any money?

Sorry - not me.

This is a mad idea I'm afraid.

Your business does not stop you selling on the ope market. That is what you should do if your business is expanding and you need more space.

Get your mum to read:

* New landlords: advice, information & links

BrassicWoman

This sounds like a massively selfish thing to ask of her.

If your business is profitable, rent business premises for six months and store your stuff while you sell and move. Don't try and force a family member into a stressful and tying transaction for your own ends. I can't see anything she gets out if it, and she won't be able to renovate quickly to let while the property is full of your business stuff.

This is an unfair thing to ask of her.

davidmcn

Jamesh wrote: »

I don't think I will get a good price for it

Have you actually asked any agents for their opinion? Buyers are generally able to see through sellers' possessions.

Is she likely to struggle getting a btl mortgage?

It sounds like she already is struggling. What does her broker say?

Bossypants

davidmcn wrote: »

Have you actually asked any agents for their opinion? Buyers are generally able to see through sellers' possessions.

Agreeing with this, if the flat is desirable then messiness isn't going to put people off, particularly if it is 'clean' mess like paperwork and other business-related odds and ends, as opposed to things like dirty dishes and hampers of unwashed laundry.

Try marketing it and see what happens.

Jamesh_3

Lol, just because a business Is profitable does not mean it is at the level where business premises can be rented. Lots of home businesses rely on the fact that they have little to no overheads. Any business premises would kill my business. What a stupid thing to assume.

-My mum will be buying the property BELOW market value
- she is the one who suggested it before you jump to conclusions

yoshiyella

Jamesh wrote: »

Lol, just because a business Is profitable does not mean it is at the level where business premises can be rented. Lots of home businesses rely on the fact that they have little to no overheads. Any business premises would kill my business. What a stupid thing to assume.

- My mum will be buying the property BELOW market value
- she is the one who suggested it before you jump to conclusions

You have just said "What a stupid thing to assume" then follow it up with "My mum will be buying the property BELOW market value" arguing that you cannot sell it whilst running a business in the flat and then saying that although proftable not enough to rent -hmmm, I don't believe!

yoshiyella

yoshiyella wrote: »

You have just said "What a stupid thing to assume" then follow it up with "My mum will be buying the property BELOW market value" arguing that you cannot sell it whilst running a business in the flat and then saying that although proftable not enough to rent -hmmm, I don't believe!

If you are prepared to sell it at below market value then a buyer on the open market will certainly buy it! There is more to this then you are letting on in my opinion!

Pixie5740

If you're prepared to sell at below market value then have you considered selling at auction? It'll save your mother the headache.

BrassicWoman

Jamesh wrote: »

Lol, just because a business Is profitable does not mean it is at the level where business premises can be rented. Lots of home businesses rely on the fact that they have little to no overheads. Any business premises would kill my business. What a stupid thing to assume.

Then you're not yet secure enough to be moving house and blowing money on solicitors fees etc, and giving away equity to your mother.

I too think there is more to this than you are telling us. Why do you need to move now, exactly?