Renting to family

Kynthia

OP the second post wasn't rude but your response was. It is a fact that hardly any lenders allow letting to family so it will be difficult for your mother to find one. Then she'll need to declare the income to the HMRC and pay tax on the taxable profit (which isn't the same as cash profit as not all expenses are allowable). Plus if market rent isn't being charged and they found out they could decide to tax her as if it was being charged. Plus she'll have to get annual gas safety certificates and comply with other current and aby future landlord regulations.

If she doesn't live there will she be buying another property as there's the 2nd home CGT hike starting soon that could impact her. Surely it would be simpler to sell for an achievable price and clear the mortgage rather than hold out for more than people are offering and go through all of this.

xylophone

Is there any chance of your buying the property from your mother with a gifted deposit from her?

Pixie5740

I should have added Fact 3. Properties will sell if people have realistic expectations of how much someone else is willing to pay for the property. On the market for a year, with a number of offers but none of them high enough means your mum is not being realistic about its value.

Poppie68

:think:Another endearing OP... You started off rude and rather aggressive and except help?..:rotfl:

csgohan4

Awww... too late on this one, no more popcorn

RADDERS

I work for a smaller mutual Building Society and at the moment we do seem to be offering regulated buy to lets for family occupation. I believe that we are quite stringent on policy but I am sure if you go to a decent broker he would be able to find a suitable lender. As you are not claiming benefits and are willing to pay the 125% of the mortgage payment as rent, I think the maximum loan to value though is only about 60% but not sure about that. Don't be put off it may be doable.

DRP

Poppie68 wrote: »

:think:Another endearing OP... You started off rude and rather aggressive and except help?..:rotfl:

there seems to be a lot of this kind of OP at the moment - is it the school holidays...?

theartfullodger

Facts:

a) Most experienced landlords are of the opinion you should never rent to friends & family.
b) If a house doesn;t sell for a year then there are three likely reasons
..i) The price is too high
..2) It's a mess and needs sorting to be more attractive.
..III) The agent and/or description-advert is a disgrace and needs replacing.
c) Of course it is legal to rent to close relatives but it is fraught with dangers.
d) There are people posting here who are trying to help you & mum by protecting mum from making a daft decision. Most calm rational persons would consider this helpful, even if unwelcome, many perhaps big enough to see this.
e) Stating "" ... both have Stable jobs, we don't claim housing benefit or any other kind of benefit (apart from child tax credit) """ means you work with horses (I doubt it but do let us know...) and seem to have probably forgotten the Child Benefit you are likely receiving.
f) About a million people in work get (some) housing benefit: It's probably worth the hour or so it would take to see if you might....
https://www.turn2us.org.uk/Find-Benefits-Grants

Cheers! (Landlord for what it's worth..)

getmore4less

Jojo84 wrote: »

My question was about facts, not opinions.
I know not all lenders allow it, my question wAs whether it's possible or not.

There really is no reason to be rude about it.

Yes, she has a vehicle to pay back the mortgage in 2-3 years.

ask the current lender to extend the term till this vehicle matures and can pay back the debt.

Can it be cashed in now?

Prothet_of_Doom

I would happily rent FROM a relative but not TO a relative.

I would expect to pay a market rent with no discount, and in return, I'd expect that all their normal repairing obligations as a landlord were met.

If they were not, I'd give notice at the end of the fixed term and find somewhere else.