buy to let for daughter

Tayloriw1

hello is it feasible to buy a house ( only a 2 bed ) and rent to my daughter

any tips or advice appreciated thanks

gingercordial

Do you need to get a mortgage? BTL lenders may forbid letting to a family member.

You will pay the additional rate stamp duty on purchasing a second home. You will have to declare the rent she pays you to HMRC and pay income tax on it. You will have to abide by all of the legal obligations of a landlord, as if you were renting to an unrelated person, so make sure you are fully aware of what all of those are before you consider this further.

sal_III

It is feasible, but the rental income will be taxable, your home/building insurance will be more expensive and you will have some extra expense and duty as private landlord.

AnotherJoe

One difficulty might be that not many BTL mortgages will allow you to let to relatives.

You could potentially bypass that by getting an extended (or new) mortgage on your own house and then buying for cash. Thats what i did a few years ago.
You can still claim for the tax relief.

sal_III

What is your long term plan for that property, are you going to leave it for your daughter? If so, is it an option to put her on the deeds even better on the mortgage (as few lenders allow people on the deeds who are not on the mortgage) with you. Thus avoiding the whole LL/tenant angle

foxy-stoat

https://forums.moneysavingexpert.com/discussion/5848349/daughter-sold-house-pay-proceeds-to-another

What happened to all the cash she had from her previous property last year? Can she not buy a property with you and live happily ever after?

Tayloriw1

different daughter, but I think we have a solution I have just won on a scratchcard

foxy-stoat

Tayloriw1 wrote: »

different daughter, but I think we have a solution I have just won on a scratchcard

Winner winner chicken dinner.

sal_III

foxy-stoat wrote: »

https://forums.moneysavingexpert.com/discussion/5848349/daughter-sold-house-pay-proceeds-to-another

What happened to all the cash she had from her previous property last year? Can she not buy a property with you and live happily ever after?

Wonder what that post contained, it seems to have been wiped out, right after your comment.
Last edited by Tayloriw1; Today at 2:15 PM.

foxy-stoat

Doesn't matter as it was a difference daughter, she owned a property with her ex and they sold it and he was asking if she could put her 50% of the equity in his bank account and she was 100% not going to be claiming benefits.

Shame that both daughters had young children, both split with their current partners about the same time, 1 had a property and 1 certainly didnt, but they both ended up renting. Odd how life goes eh.