How to buy-to-let with my mum (for my sister!)??

sofie_3

My mum is buying a flat in Surry for my sister to rent from her. She can get an 85% mortgage to do this. I want to provide the other 15% of the purchase price by extending the mortgage on my own house. The rent will be shared in the same proportions.

Is this possible? Should my mum buy the house and I just give her my share - and we draw up an agreement that when the house is sold I get 15%?

What would be the tax implications?

Can we buy the house jointly in those proportions? would that stop my mum getting the buy to let mortgage (which will be interest only over 5 years btw). The plan is my sister will be well into her career by then and buy the flat from us. If she cant, we'll sell the property anyway as my mum will be retiring.

Thanks v. much

Mortgageman

Is this possible? Should my mum buy the house and I just give her my share - and we draw up an agreement that when the house is sold I get 15%?

Yes