Purchasing parents house

Dave903

Hello everyone.

I have a question, it’s quite long winded so apologies. I recently split from my partner and walked away with nothing, I have currently moved in with my parents. Due to reasons I’d rather not go into, my parents have an interest only mortgage, which has seven years left. After that they have the chance to purchase the house for £130k, the house has a market value of £225-250k. They have asked me if I would like to buy it, and they would pay me rent, as I would be living there too. They seem to think that if I were to buy the house now, then I wouldn’t have to find a deposit as there is equity in the property. They are also under the impression that as their mortgage is interest only, then their payments would stop automatically if I were to buy the house. Would I have to declare that they are paying me rent, also would I have to pay tax on it? It would probably be beneficial for me to declare it in some way, as I would like to get a loan for a nice car a few months later, and the extra income would help my chances of a loan. So my question is, are my parents correct, and would it be possible for me to do this?

Many thanksgiving , and thanks for reading.

DUTR

You can buy the house, the lenders may require you to have a deposit, that is not up to your parents.
You can get a 100% mortgage sometimes but at a much higher rate than if you put some deposit.
If you are listed as having a mortgage with your ex then this has to be declared or relinquished.
Your parents can live there, they would be lodgers I would expect, the mortgage application has the relevant questions for you to answer.

amnblog

Yes, you can buy it at £130,000 with a cash deposit if you have provable income and a decent credit record.

Use a good Broker as most Lenders wont let mum and dad stay in the property.