Buying a house for my parents. They are providing the deposit

jaime123 · 28 September 2015 at 11:12AM

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

libf · 28 September 2015 at 11:24AM

Age of your parents as well as their credit history will cause problems. Affordability will need to be looked at, especially as you already have a mortgage.

Consult a broker for your best options.

Senior_Paper_Monitor · 28 September 2015 at 12:31PM

As libf indicates this may well be more difficult than it sounds to you (and in my opinion more difficult than it should be) - I would only expect you to resolve this with the assistance of a good broker.