Buying with family

pwrightyp

I am an international expat, looking at options for property-buying in the UK. The intention is that my mother in law will live in the property. We will remain abroad.

I understand that even though the 'tenant' will be entirely reliable, as a family member, mortgage companies will most likely insist on a 25% deposit and a guaranteed minimum rent (125% of the mortgage payment, I believe)

As an alternative, what might be the circumstances if the mother-in-law contributes to the purchase (she has a decent job and is financially stable)? Presumably we could pool salaries for a higher mortgage and also, more significantly, get a residential mortgage because she will live in the property?

Thanks in advance.

mark55man

can't help you with the details, but from my experience most problems with this sort of arrangement start when the family member turns out to be unreliable - even a simple thing like your MIL starting a new relationship (assuming no mention of FIL in the post is the case in real life). would you be happy to pay their housing costs, or if step kids and remarriage or worse happened - would you be OK to lose your share


Plenty of advice on the technicalities will be along, but largely you probably need a bit of professional advice as most wont be sure of the international dimension

pwrightyp

Thanks Mark, I appreciate the comment.
It might be famous last words but I feel very comfortable with the family reliability, I just don't think that would be an issue. The MIL is pretty decent! It's definitely the situation of us being international and her living there that is the query.
Thanks again

mark55man

No problems. Ther is a site called lemonfool.co.uk (an offshoot of the old Motley Fool forums, which were insanely valueable) they have a couple of home and house buyers boards, and are probably more richly (sic) represented people to whom the international dimension is well understood.

so although this recommendation is a bit disloyal to mse.com :money::mad::money::mad: - you should have a peek there and maybe repeat the question

Thrugelmir

You may struggle to obtain a BTL mortgage as an expat. Likewise letting to family members results in the available options being greatly reduced before you've even started.