Buying a parents house

emmasaunders70

Hi I would like a bit of advice. My mother has had a mortgage for about 10 years, she is now disabled and has been struggling for a number of years paying it due to being unemployed and not able to work. She is getting housing benefit but it does not cover the full monthly cost which she is having to make up. I would like to be able to buy the house from her and then rent it out to her so she can have more money. The plan is that the equity that she makes from selling the house could go on my deposit to buy the house from her. Is this even possible?


Thanks in advance

pleasedelete

Explain in more detail how you think that will help her?

amnblog

Depending on the affordability situation and the mortgage lender you approach this can be done.

(The housing benefit is another issue)

glentoran99

pleasedelete wrote: »

Explain in more detail how you think that will help her?

Think its simple, he gets the housing benefit as rent and she doesn't have a shortfall to make up


that said I wasn't aware you could get housing benefit to pay a mortgage

missbiggles1

emmasaunders70 wrote: »

Hi I would like a bit of advice. My mother has had a mortgage for about 10 years, she is now disabled and has been struggling for a number of years paying it due to being unemployed and not able to work. She is getting housing benefit but it does not cover the full monthly cost which she is having to make up. I would like to be able to buy the house from her and then rent it out to her so she can have more money. The plan is that the equity that she makes from selling the house could go on my deposit to buy the house from her. Is this even possible?


Thanks in advance

You can't claim housing benefit to pay a mortgage, neither can you normally get it for a property you've previously owned.

foxy-stoat

emmasaunders70 wrote: »

Hi I would like a bit of advice. My mother has had a mortgage for about 10 years, she is now disabled and has been struggling for a number of years paying it due to being unemployed and not able to work. She is getting housing benefit but it does not cover the full monthly cost which she is having to make up. I would like to be able to buy the house from her and then rent it out to her so she can have more money. The plan is that the equity that she makes from selling the house could go on my deposit to buy the house from her. Is this even possible?


Thanks in advance

For her sake I hope not.

1. She would lose her housing benefit as her landlord would be her Mother.
2. You would unlikely be able to get a regualated BTL mortgage (renting to family)
3. Some lenders are not keen on buying property from somone who will remain living there.
4. The rent would need to be 125% the mortgage payment.
5. You would have to pay income take on the profit.

You would be better off transfering her mortgage payment to her a few days before its due. Problem solved, she would live there mortgage free and you will eventally inherit the house anyway.

pleasedelete

foxy-stoat wrote: »

For her sake I hope not.

1. She would lose her housing benefit as her landlord would be her Mother.
2. You would unlikely be able to get a regualated BTL mortgage (renting to family)
3. Some lenders are not keen on buying property from somone who will remain living there.
4. The rent would need to be 125% the mortgage payment.
5. You would have to pay income take on the profit.

You would be better off transfering her mortgage payment to her a few days before its due. Problem solved, she would live there mortgage free and you will eventally inherit the house anyway.

Plus stamp duty and additional if they already own a property.

If only there was a simple answer like:
Giving your mother the shortfall each month rather than trying to rip her off. If you can afford the stamp duty and legal fees to become a buy to let landlord with a fully gifted deposit you can afford to financially help out.
or
Your mother downsizing to a property that they could better afford

foxy-stoat

One point, is your Mother on a repayment or interest only mortgage at the moment, this would change this.

emmasaunders70

My mother is already receiving housing benefit to cover the mortgage but it does not cover it all. She took out a very high interest mortgage when she bought the property.

emmasaunders70

pleasedelete wrote: »

Plus stamp duty and additional if they already own a property.

If only there was a simple answer like:
Giving your mother the shortfall each month rather than trying to rip her off. If you can afford the stamp duty and legal fees to become a buy to let landlord with a fully gifted deposit you can afford to financially help out.
or
Your mother downsizing to a property that they could better afford

I already give my mother the shortfall every month I am have no intention to "rip her off" I have been paying the mortgage for the last 6 years. She has no money to buy anything. At least if the mortgage was in my name it would be my responcability. My mother would never be able to get another mortgage so downsizing is out of the question and she loves her house she doesn't want to move.

missbiggles1

emmasaunders70 wrote: »

My mother is already receiving housing benefit to cover the mortgage but it does not cover it all. She took out a very high interest mortgage when she bought the property.

You don't get housing benefit to pay a mortgage.