Declaration of Trust and Tax implications in buying house for Mum

Jack789

Hello, I did post on the house buying forum but thought it may be more approriate here. I am looking for some advice in regards to purchasing a property on behalf of my Mum and for her benefit. She is in the process of selling her house and will walk away with about £75,000 equity however due to her age and credit she cannot get a mortgage.!
My thoughts were that I would purchase a property by way of a Buy to Let mortgage for my Mum to live in (I have spoken to a Mortgage Lender who has confirmed that there are a couple of lenders that allow you to let to family members as I do appreciate that not a lot of lenders allow this).!
The plan is that my Mum will pay the mortgage and we enter into a Declaration of Trust confirming that I hold the beneficial interest of 100% for her. Essentially the house will be my Mum’s, the deposit funded by her, any additional equity in the property would be hers and maintenance would be done by her. Does anybody see implications with this? Will this be classed as income on my part by HMRC as I legally own the property? Will it be subject to CGT? Any advice/help would be greatly appreciated. Many thanks

xylophone

Could your mother get a mortgage of her own if you guaranteed the repayments?

Jack789

Unfortunately not due to her age and credit.

xylophone

Is your mother of an age to be considered for local authority sheltered housing?

If so she would have a secure home and the proceeds of the house sale could be invested to assist her with living expenses.