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Buying property for son to live in - where to get advice?

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Comments

  • steve866
    steve866 Posts: 536 Forumite
    Fourth Anniversary 500 Posts Name Dropper
    Could you re-mortgage your own home and take out enough equity to buy the new home outright?
  • steve866 said:
    Could you re-mortgage your own home and take out enough equity to buy the new home outright?
    This is the ideal solution as it bypasses lenders, many of whom impose conditions. 


  • theartfullodger
    theartfullodger Posts: 15,420 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 6 January 2024 pm31 12:18PM
    Will son be paying rent|?? Genuine market rent?? (If not why not??)

    I've 3 sons: No way I'd do this for them, IMHO a way of training them that may end in disappointment and tears... 

    Others will hold alternative views: Best wishes to all...
  • kingstreet
    kingstreet Posts: 39,118 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    A regulated BTL is based on the applicants' income, not the estimated rent possible.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • RHemmings
    RHemmings Posts: 4,553 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    RAS said:
    Is this really the time to buy a house for your son?

    If he's graduating this summer, he needs to be very flexible about where he lives over the next few years. Your plan risks trapping him in an area which isn't to his best advantage in terms of career progression, or incurring repeated legal and agency fees, or just ending up with you having to manage another rental.

    Much better to wait a few years until he has more idea of his career direction and location?
    I offered to buy my son a property and it looks like it isn't happening for pretty much these reasons. My plan was to buy the property for cash, and for it to be in effect 'his' now and legally his (freehold, without a mortgage) at some point in the near-ish future. The plan included having it let out by the same letting agent that manages my current (rented) house. Not expecting that to be financially the best option due to letting fees, but I know the letting agents and they are good at what they do (from a tenant's perspective at least.)

    As someone who changed whole countries after graduating, let alone cities within countries, in the first years of my career, I can see the issue. But, my thoughts are that a property anywhere would put my son on the property ladder, and for him to therefore have an asset that would support him purchasing anywhere else. 

    In my case, my son doesn't like renting, and doesn't want to be a landlord either. Or even for me to be one in his name. 

    So far it looks like it's not happening in my case, for reasons including those given by @RAS, but I was interested to see this thread. 

    I'm adding this as general discussion relevant to the general area asked about - buying a property for an adult child. However, the OP hasn't asked about the generalities of what sort of property, where and whether freehold or leasehold, etc. Only whom to obtain advice for concerning the financials. 
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