Mortgage

Paulmridley

Hi I would like to help my son & his wife purchase a house, they do currently live in a mortgaged flat but would like a house to start a family The flat has  very little equity. They are both on low income (36K combined) I have been advised that the only way is for me to purchase one on a buy to let mortgage then rent it to them at cost to cover the mortgage repayments. I can see this been fraught with problems further down the line with inheritance tax etc. Any recommendations would be must grateful.       

MovingForwards

If you have the cash, do a private mortgage.

Buying a house to rent it to them requires a particular mortgage, not many lenders do them for renting to family.

You also need to worry about the extra stamp duty, paying tax on the rent received, complying with all landlord legal obligations and if they didn't pay the rent would you actually evict them?

If they want a house can they not sell the flat and do a shared ownership property, stair-casing to 100% ownership?

Have they saved any money towards buying a different place?

Who said the only option is to buy one for them?

Many people raise families in flats, lots of people dream of having a house, what's achievable compared to dreams is often a different story.