Son's partners father buying them a house ?

Retired_Mortgage_Adviser

Mojisola wrote: »

It all depends on what the GF's father is proposing. If he means "I'll buy the place as a BTL and you can be my tenants", that will be the case.

If he means "I'll buy a second home and you just give me enough to cover the mortgage payments" that's a very different situation.

What would be different for the son? In both cases the son will be a tenant, with the same rights/responsibilities, irrespective of how the father owns the house, the kind of mortgage or his tax situation.

In law, a tenancy is created by the conduct of the parties (X lives in property owned by Y and pays Y some consideration for the same) and does not need to have a written agreement to be legally binding.

Mojisola wrote: »

I thought that it was difficult to get a BTL mortgage if a family member was going to be the tenant.

Difficult yes, impossible no. All you need is a half decent mortgage broker.

[Deleted User]

Mojisola wrote: »

It all depends on what the GF's father is proposing. If he means "I'll buy the place as a BTL and you can be my tenants", that will be the case.

If he means "I'll buy a second home and you just give me enough to cover the mortgage payments" that's a very different situation.

Not really. Even if the father charges a low rent a tenancy will still be created.

Mojisola wrote: »

I thought that it was difficult to get a BTL mortgage if a family member was going to be the tenant.

Difficult but not impossible. Maybe he can afford to buy cash. Either way it's not the OP's concern or even her son's. I never enquired as to how my landlords funded the purchase of my home.

phoebe1989seb

Lover_of_Lycra wrote: »

I don't really see the problem either. If your son is a joint tenant with his girlfriend that he has as much legal right to occupy the property and she does regardless of who owns the property. Even if they had a bust up and she want running to daddy your son couldn't simply be kicked out in the street because that would be an illegal eviction.

Me neither.....and I'm speaking as someone whose parents once bought a house (outright) for me and DH to live in when we found it was unmortgageable during the purchasing progress. We did the work required ourselves, then got a mortgage and repaid him an agreed amount

Oh, and whilst everyone is different, DH moved into my rented flat when I was a student and we'd known each other two weeks. A couple of years later we got married and we're still together. We'll have been very happily married 32 years in May

Marvel1

Suggest your son understands fully his rights as a tenent in case anything happens.
Worse case: illegal eviction route and his rights to sue.

Silvertabby

Socajam wrote: »

Have you heard the saying: blood is thicker than water?
Bad idea to do this, it could return and bite him in the butt

A little off piste, but the saying 'blood is thicker than water' actually means the opposite of what most people think it means.

It means that the blood shed in battle by brothers in arms is thicker than the water of the womb.

AlexMac

Totally off-piste...

or Looking it from the other dad's perspective...

an example of a similar family case-study?

I was once rash enough to buy a flat (with help from a redundancy payment) for my girlfriend's daughter (then a new single parent) to rent with her baby... I didn't even own my own place at the time... so totally dependent on the gf's goodwill for a roof and a bed...

...

...

Oh- you want to know how it turned out?

Great.
- subsequently married my girlfriend
- daughter & baby eventually moved on
- lots of successful subsequent lettings; so I became a BTL Landlord. So satisfactory that we bought a second BTL...
- all lived happily ever after...
- still do... especially
- grand daughter; now in her mid 20's, who ironically recently moved back in to the old flat as a tenant, in her own right. Paying rent on time too!
- and we've made so much Capital Gains on the flat that if we ever sell, we'll pay the taxman almost £50k in CGT!

Ironically, all down to Margaret Thatcher, whose crack-down on lefty local Council budgets led to my redundancy from public service (and incidentally- a happy second career in charities, as I found it impossible to get back into my old line of work)

OK- that's of absolutely no use to you or your offspring... but it could go well; although I'm not really recommending marriage as an investment strategy... Or hard right government budget cuts as a catalyst for becoming a landlord! Although both proved happy MSE tips for me

N1AK

marra2 said:

Hi all
My son and his new girlfriend of 2 months were going to rent a house but her father said he would buy a house for them with a mortgage in his name and they pay him the mortgage payments.
My question is, if say they did this for x amount of years and split up, would my son be entitled to anything from the house ? As I see it they're just renting it off her father !
Any advice would be great
Thanks

There's a lot of people taking a very negative view of the father here based on almost no information; I hope those doing it don't mind others jumping to negative assumptions about them.
Yes, they'd effectively be renting; however as mortgage payments could easily be as low as half rent on an equivalent property and they were going to rent anyway that's hardly a downside (you think your son would be entitled to anything if he rented as originally planned?). If the father effectively subsidises their rent by (made up numbers) £400pm by only charging them the equivalent of the mortgage payment he's saving them nearly £5k per annum.