Renting Another House

UKsomewheretolive

Last year I took over my parents mortgage, I had been living with them for a few years beforehand and not an issue but now would like to move out into my own place.

I can comfortably afford to continue to pay for the mortgage and rent somewhere else. What I do not know is if I am allowed to move out because I have a mortgage.

I am not charging my parents rent, I am paying everything associated with the mortgaged property, I just do not want to live there!

Any input would be appreciated.

Stevie_Palimo

It's your money and if you can afford to pay both then as far as I would see it there is no problem doing this, There could be some tax issues but someone more qualified than me would be better placed to advise.

Pixie5740

There's nothing preventing you having a mortgage and paying rent elsewhere. I've done it before.

AdrianC

When you say you "took over your parents mortgage", do you mean that both house and mortgage are still in their name? Or do you mean that you took out a mortgage in your name, they paid their mortgage off, and ownership of the house was transferred to you?

UKsomewheretolive

I took out a new mortgage on the property, the house and mortgage are in my name.

Thank you for the replies, I have found a great little place and this was the only thing holding me back.

G_M

So to be clear:

* you own the property?
* the mortgage is a standard domestic mortgage in your name?
* Your parents live there?
* you plan to make a different property your primary residence?

I suspect that even though you don't charge rent, your parents would gain property rights through their exclusive occupation.

This may breach your mortgage contract. You may need to switch to a BTL mortgage (or apply for CTL).

You might try posting on the mortgages board here to see if you get a reply from a mortgage expert.

There would also be a Capital Gains Tax implication, as the property is no longer your primary residence. when you come to sell, you may have to pay tax on the increase in value.