Gifted deposit & Buy to let - help

SB1987

Hi, my parents are just about pension age and would love to move house but are a bit stuck as their house is only worth around £65k. I’ve been thinking how I can help them out.

Thoughts are, they sell their house and gift me the deposit of £65k, then I get a family buy to let with a mortgage for whatever I need and charge them rent. As far as I know it’s all above board this way but I’ve read mixed things about gifted deposits and buy to let.

The deposit would be a gift and absolutely not a loan. I’m an only child so when they pass on everything would come to me anyway so not concerned re any challenges there.

Probably need to see a mortgage broker but if anyone has any experience / info in the meantime, that would be much appreciated

dimbo61

Sorry but this is a non starter.
£65,000 gift from parents who want to live in the BTL property you hope to buy !
Good luck with that.

[Deleted User]

Probably easier to do as 2nd residential mortgage as home for dependant relative.
Not all lenders will allow someone who contributed to deposit to live in the property but there are plenty who will

Wouod come down to personal affordability

I can't see a lender allowing it to be done as a btl

Keep_pedalling

It sounds like they have few other assets other than the house, so they would be bonkers to give it away.

SB1987

Thank you, I hadn’t realised the 2nd mortgage was a thing but I’ve since seen Halifax offer a second home loan. Am I best still seeing a broker for that?

[Deleted User]

Yeah definitely. Some lenders are much better than others at affordability assessments on seconds homes. Also some that will do them at 10% deposit whereas I think Halifax still need 75%