Buying parent's house - rules around occupancy/rent

ThomasSAO

My parents are separating (ages 77 and 74). The plan is for my mum to stay in the family home, which is owned out-right with no mortgage. 
The circumstances of the separation are extremely acrimonious and our father will effectively be estranged from the family following this.
He needs to release some money to buy a new property and I am considering buying the house - value approx £250K and getting a second mortgage for the £125K left after he takes his half. 
Would I then be able to let my mum live in the property rent-free? The advice online seems to suggest no but wondering of their is any way around this. 

Thank you.

Keep_pedalling

Why buy the whole thing? Why not loan your mother the money to buyout your father then put a charge on the house to protect your loan.

What other marital assets are involved such as pensions and savings?

ThomasSAO

There will be other assets but I'm not 100% clear on those yet. 
I'll look into the idea of a loan instead, thank you. 

housebuyer143

If you buy it you have second home stamp duty, CGT and you can't get a BTL mortgage as you are not renting it, so you would need to be able to afford this on top of any other mortgage you have etc. 
Not impossible but not really a great option tbh.

ThomasSAO

What about them signing over ownership to me (and brother who lives overseas if appropriate) and then us releasing equity? 
My family are looking to move house next year and my mum has suggested us using her home - if we are given ownership or buy it - as extra capital to make a bigger move. Is that a possibility? 

Keep_pedalling

ThomasSAO said:

What about them signing over ownership to me (and brother who lives overseas if appropriate) and then us releasing equity? 
My family are looking to move house next year and my mum has suggested us using her home - if we are given ownership or buy it - as extra capital to make a bigger move. Is that a possibility? 

Very bad idea for so many reasons.

amnblog

I am a bit confused as to exactly what you are saying here but if you mean:

Get a £125,000 mortgage in your name on the property take over ownership yourself, give Dad the £125,000, Mum stay in the property.

Yes, you can do all of that (subject to affordability)

Speak to a good mortgage broker.

ThomasSAO

Yes, that is what I mean. Sorry if not clear, only just starting to have these conversations. 

naf123

Keep_pedalling said:

Why buy the whole thing? Why not loan your mother the money to buyout your father then put a charge on the house to protect your loan.

What other marital assets are involved such as pensions and savings?

Not sure if you can mortgage the house to provide a loan. Unless he has existing assets.