Son and Daughter Buying me a home

sams247

I lost my home many years ago in a divorce.  I work but am now in my sixties and am renting privately.  My son and daughter would like to help me have a secure home and suggest that they join forces to get a mortgage on a house for me.  
Can they do this?
Will this have any tax implications for them?
My son owns a home already, my daughter does not.  
I would not own the home - they would but I would pay for all upkeep and maintenance.

Thank you for your advice...

Mark_d

Yes they should be able to do this.  Your son would have to pay additional stamp duty on his portion of the property.  then there is capital gains tax when the property is eventually sold.

There is a question over affordability.  Can your son pay this mortgage as well as his exiting mortgage?

Bookworm105

yes significant tax implications for them given you will not own it in your sole name

upon purchase the additional rate of stamp duty would be payable
daughter will have lost her first time buyer status if she were ever to buy her own place in the future 
son will be liable to Capital Gains Tax on his share of the property when you either die or sell it as it is not his only home/property 

if they need a mortgage they may have difficulty since lenders do not like occupants who are related to the borrower but are not party to the mortgage on the occupied property 

none of the above mean it is impossible, but they will have to get over a few hurdles whilst making their most kind gesture to you 

amounts you pay towards upkeep are irrelevant

sams247

Mark_d 

There is a question over affordability.  Can your son pay this mortgage as well as his exiting mortgage?

Yes he can, we figured this in, thank you.

Is it better if they do buy to let and I rent it from them??

Keep_pedalling

I would also point out that your security would not be that much greater than renting. You could loose you home as a result of either of your children dying before you, if they got divorces or ran into financial difficulty.

Bookworm105

sams247 said:

Mark_d 

There is a question over affordability.  Can your son pay this mortgage as well as his exiting mortgage?

Yes he can, we figured this in, thank you.

Is it better if they do buy to let and I rent it from them??

a BTL mortgage where the occupant is the parent of the owners is next to impossible to get 

you paying rent makes no difference to the issues already flagged up but of course they would then have to pay their own income tax on the rent you pay them 

sams247

OK. BTL not the way..... 

With security - at the moment I have had to move three times due to landlords selling the property.  I tried to get a shared equity loan but simply dont seem to earn enough.  

I looked at 'family' mortgage options where the three of us would apply together but this seemed to be aimed at parents buying for children not the other way around

youth_leader

I've met several people renting very happily from the Anchor Housing association - it seems very secure.  Is there anywhere near to your children? 

luvchocolate

I rent from a housing association for over 55s 
Perfect  property for me. Secure and so much cheaper than private renting 

Murphybear

luvchocolate said:

I rent from a housing association for over 55s 
Perfect  property for me. Secure and so much cheaper than private renting 

I was going to suggest this as well.  I live in sheltered housing, you get an AST for the first year then an AT for as long as you want.  They are more than happy to take housing benefit as well.  

Bookworm105

Murphybear said:

luvchocolate said:

I rent from a housing association for over 55s 
Perfect  property for me. Secure and so much cheaper than private renting 

I was going to suggest this as well.  I live in sheltered housing, you get an AST for the first year then an AT for as long as you want.  They are more than happy to take housing benefit as well.  

Housing association homes: Types of tenancy - GOV.UK