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Buying a house for parents. They are providing deposit.
Options
jaime123
Posts: 6 Forumite
Hi All,
I think I need a little help with what my options could be under the following circumstances...
My parents are currently in rented accommodation and want to cut their monthly expenditure before retirement.
I would love to help them out by taking out a mortgage for a property for them to live in, at minimal rent to just cover the cost of the mortgage.
They have £70000 saved up that they can put towards the house and I am willing to double this as a mortgage. Therefore the total property price is £140000. The house would go as a 50/50 shared ownership between me and my parents.
They have had money troubles in the past and my fathers credit rating is not the best, and he is now 65.
Could it just go down as a standard residential mortgage with both my parents and me on the mortgage or would it have to go as a buy to let?
What would the tax implications be because of this?
I do not want to release any equity from my own property (which I have 35% equity.
Thanks all for your anticipated help.
Jaime
I think I need a little help with what my options could be under the following circumstances...
My parents are currently in rented accommodation and want to cut their monthly expenditure before retirement.
I would love to help them out by taking out a mortgage for a property for them to live in, at minimal rent to just cover the cost of the mortgage.
They have £70000 saved up that they can put towards the house and I am willing to double this as a mortgage. Therefore the total property price is £140000. The house would go as a 50/50 shared ownership between me and my parents.
They have had money troubles in the past and my fathers credit rating is not the best, and he is now 65.
Could it just go down as a standard residential mortgage with both my parents and me on the mortgage or would it have to go as a buy to let?
What would the tax implications be because of this?
I do not want to release any equity from my own property (which I have 35% equity.
Thanks all for your anticipated help.
Jaime
0
Comments
-
You could try posting this on the mortgage forum - you might get more replies.
http://forums.moneysavingexpert.com/forumdisplay.php?f=150 -
I can't see anyone giving you a mortgage for this as if you default on the payments they can hardly repossess half the house.0
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