Helping 70 year old parents by a house

taylor86

My parents are looking to buy a house nearer to family. They currently have about 25% of the property value in cash. 

Their income is state pension and income from several buy to lets. 

Do they have any options to purchase now? Could I help with a mortgage? I have a good credit rating and my own mortgage and family. I earn approx 28k pa salary and 20k dividends from a Ltd company. 

They want to buy a property for 230k with 5% gifted deposit from a builder. 

Thanks in advance.

BoGoF

Sell one of the BTL's would be the obvious solution?

Brie

Presumably they want to hold on to the BTLs as future income.  So if they are getting a mortgage they would need a lender willing to lend to people of their age which might be a struggle.  To find that they might need a mortgage adviser.

There's a few reasons why you shouldn't help with the mortgage. 

To do so official would mean your name was on the deeds and also being on the mortgage would make you reasonable for it fully should anything dreadful and sudden happen to mom and dad.  That in itself may not be an issue in that without your parents around the house could be sold.  But it also means that if something happened to you what would happen to their mortgage?  Could they continue to pay?  Would your portion of the house be inherited by them or your own family?  And what if you marriage ran into trouble?  Could a spiteful ex force a sale of the home you own in part with them?  This is assuming that your spouse agrees that you should go in on the mortgage in the first place.

Then there's capital gains and second home ownership issues.  

And would you be able to get a mortgage?  You don't give much detail about your income but £28k is not a lot when you already have your own mortgage and a family which (presumably) you are at least partially supporting.  Add a couple of credit cards or a car loan or whatever and I don't a bank would be very much interested in you being on the mortgage at all.  I don't know what you mean by 20k dividends so can't guess at what a bank might think.  As for your credit rating the bank won't care as it's your credit history that will be looked at instead.

kingstreet

There's 'joint borrower, sole proprietor'. They would own the property and you would have a mortgage jointly with them to increase what they could borrow.