Regulated Buy to Let Questions.

SpireCaptain

House value £260,000

Joint Mortgage (with ex) £111,000

Deed of Trust -

Mortgage paid off

Ex- £75,000

Equity split 50/50

My original deposit of £63,000 is lost and I come out with £37,000. Ex gets £75,000 + £37,000

So Mum can purchase property for £223,000 (value minus my equity) ex still gets her dues.

Mum would deposit £80,000 and mortgage for £150,000 to cover costs of purchase.

That's the situation I'm facing.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81982388#Comment_81982388

Transactions between connected parties are deemed to be at market value.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81982391#Comment_81982391

So a gifted deposit of £80k from your Mum to you and a joint borrower, sole proprietor mortgage for the £110k. Property held in your name. This is not so rare these days, as parents help their kids get on the housing ladder.

Or property in joint names of your Mum and you. Joint mortgage with a deed specifying the split of ownership. There may be higher SDLT to pay as Mum already owns other properties.

Or your Mum buys it in her name with a regulated mortgage and you pay her whatever the 2 of you agree. Doesn't necessarily have to be formal rent.

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/81982575#Comment_81982575

Thank you again for taking the time to explain the options available to us. One final question- With my level of debt (circa £50k no missed payments yet) would option 3 be the only viable option to use in your opinion?

Would it be worth approaching current lender Halifax who I've had a mortgage with since 2014 and ported it 3 times to current address or are there more specialist lenders that would have more options? Thank you again. It's much appreciated all this feedback.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81982630#Comment_81982630

You could ask Halifax, though I don’t know if companies reward loyalty these days. The fact that you are already with them may mean they won’t credit check you and just need a transfer of equity between your ex and your Mum.

You really need to see a mortgage broker, possibly one that specialises in more difficult cases. Or you could post on this thread, don’t bother reading from the start as it’s long and some things will be out of date:

https://forums.moneysavingexpert.com/discussion/6190962/mortgage-broker-ask-me-anything

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/81982655#Comment_81982655

Thank you that's a great shout. I'll have a delve into that thread 👌

kingstreet

If I've got this straight you're looking at JBSP with Halifax? Unfortunately it's not an option. For them all borrowers have to be owners.

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/81983426#Comment_81983426

Thank you for clarification. Looking like the only option is still a regulated BTL in that case.

ACG

I didnt read all of the replies… Have you spoken to a broker?

The devil is in the detail. Get a good broker onboard and they can run through your situation and then find solutions.

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/81983886#Comment_81983886

Definitely the next step. The broker I usually use had the wrong information about Regulated BTL that's why my sister needed clarification so jumped on here to confirm my suspicions. My Mum has a broker that looks after her portfolio and knows her financials so it'll probably be him that we go with. I've got a 2nd broker who managed to port out Halifax mortgage in 2019 when I had £27,000 debt so I know she's got the nous to be able to be creative but again she's 150 miles away from Mum so she will probably be more comfortable with the broker she uses (unless he has the same wrong info about Regulated BTL 🤦)