Buy To Let help needed......

Pinot_Grigio

Myself and my partner are looking to buy my parents apartment as they are moving into rented accommodation themselves but also want to free up some equity for them to enjoy there retirement.

We have a ready made tenant which is also a family member.

We understand that most lenders require a 25% deposit so that it is a 75% LTV rate. We don't have the deposit as such however we will be able to do this as my parents would like to gift me the deposit from the proceeds of the house sale e.g:

£75k purchase price

£18,750 deposit

Parents receive £56,250 when sale goes through rather than the 75k as they will gift us the deposit.

Is this something that lenders will be able to offer us?

Thanks for anyones help on this.

somethingcorporate

You'll need a regulated B2L mortgage to rent to a family member which the rules for are punitively stringent in terms of rental requirements.

One for a broker.

ACG

This is without doubt one for a broker.
Regulated buy to let and gifted deposit/equity.

Pinot_Grigio

Thanks for your help. We will speak to a broker

charliewocka

We got our BTL offer letter over the weekend and one of the conditions clearly laid out is that the property CANNOT be let to ANY member of family. We are with Woolwich. Might be worth checking with lender to make sure this is addressed and go through broker.

kingstreet

charliewocka wrote: »

We got our BTL offer letter over the weekend and one of the conditions clearly laid out is that the property CANNOT be let to ANY member of family. We are with Woolwich. Might be worth checking with lender to make sure this is addressed and go through broker.

That's what "regulated BTL" means, the property will be let to a family member.

In these circumstances there are very few lenders and affordability is based on applicant's income, not rent.