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Uni house for son and 2 friends
Spanner70
Posts: 4 Newbie
We are looking to buy a property for my son at uni, he will have two mates sharing the flat with him.
How is this best achieved.
flat in our name, buy to let mortgage, HMO? seems some lenders don't like buy to let if family member is in house,
flat in his name and rent a room scheme?
any other ideas? new to the idea of a second property and its a minefield as far as I can tell!
How is this best achieved.
flat in our name, buy to let mortgage, HMO? seems some lenders don't like buy to let if family member is in house,
flat in his name and rent a room scheme?
any other ideas? new to the idea of a second property and its a minefield as far as I can tell!
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Comments
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They can be joint tenants and avoid the HMO given its mates rather than random people.
What's the plan in 2 years time when they graduate?0 -
What is your plan if and when there is a massive fallout, one of them gets drunk and smashes the place up, wants to bring girl friend in to stay?
They might be mates now but things can change.If you go down to the woods today you better not go alone.2 -
Who is going to pay the mortgage? you' or him and his mates via their rent?0
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how do you go about getting a joint tenancy?DullGreyGuy said:They can be joint tenants and avoid the HMO given its mates rather than random people.
What's the plan in 2 years time when they graduate?
once graduated, maybe sell, maybe rent to other students0 -
we'll pay mortgage but will be covered by their rent0
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no idea! very early planning stages . but I guess thats the risk with any HMOGrumpelstiltskin said:What is your plan if and when there is a massive fallout, one of them gets drunk and smashes the place up, wants to bring girl friend in to stay?
They might be mates now but things can change.0 -
Spanner70 said:
how do you go about getting a joint tenancy?DullGreyGuy said:They can be joint tenants and avoid the HMO given its mates rather than random people.
What's the plan in 2 years time when they graduate?
once graduated, maybe sell, maybe rent to other students
Joint tenancy just means all tenants sign a single agreement rather than individual rooms. However it does not, as suggested, get you out of having an HMO at least as far as the Housing Act is concerned. If there are local restrictions on HMOs via article 4 directions or selective/additional licensing then these would still apply to a joint tenancy. It makes a difference for Council Tax purposes but that is irrelevant to students anyway.
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time to learn the difference between HMO and joint tenancy then. Start by reading the forum guide (assuming uni town is in England/Wales)Spanner70 said:
no idea! very early planning stages . but I guess thats the risk with any HMOGrumpelstiltskin said:What is your plan if and when there is a massive fallout, one of them gets drunk and smashes the place up, wants to bring girl friend in to stay?
They might be mates now but things can change.
Tenancies in Eng/Wales: Guides for landlords and tenants — MoneySavingExpert Forum
why do you think this is a wise investment for you?
will your child thank you for losing them their first time buyer status if put in their name?
if not, have you allowed for higher rate SDLT in your investment appraisal?
found out how tax operates with mortgage interest yet?
2 year time frame - you will be lucky to break even with the fees and others costs of your "investment"1 -
Agree with bookworm about your child losing their FTB status.
Does child also want to be a landlord to mates?
And whatever happens can you afford the place if it's just your child living there?I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung1 -
Usually any BtL mortgage does not permit renting to relatives..Spanner70 said:We are looking to buy a property for my son at uni, he will have two mates sharing the flat with him.
How is this best achieved.
flat in our name, buy to let mortgage,................
Many landlords advise don;t rent (to or from) relatives or friends or friends of relatives. Quickest way to ruin relationships...0
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