Buying property for father - multiple issues to consider

mither_2

Thanks to everyone for their help. These boards are so useful when getting into niche subjects like this. I could ask my dad to go to Citizens Advice Bureau but he'll never get it done and would then only provide half the info that I need. That's if they had the answers to begin with.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82023756#Comment_82023756

The situation regarding high demand for rental properties has been around for a few years, not just since recent changes in legislation. In fact it was at its peak about 3 years ago, with stories about 25 people queung for a 5 min viewing of properties, and it has calmed down to some extent. It varies from region to region though.

A friend of mine had to go through all this right at the peak in 2023, as he had to leave the family home due to marital problems. He was 69 at the time and despite offering to pay 12 months rent upfront it took months to find somewhere that was half decent. It was only a one bedroom flat, but modern, not too poky and handily located in a small town centre.

So it is tricky, but I think if you keep looking/trying, you will probably find somewhere in the end.

saajan_12

https://forums.moneysavingexpert.com/discussion/comment/82023765#Comment_82023765

I like all of these suggestions and think these could work but in order to do so he needs to get divorced from his ex-wife. 

No he doesn't, that's the point I was making. If If he buys the house for £100k with a £100k private mortgage from you, then his equity is 0k. If the property appreciates to £105k then his ex-wife can argue the toss over the £5k. If he pays off another £5k then his equity is £10k (105 - 95). Its not the whole property.

Mgman1965

Remember also, you would then become a landlord, along with all the responsibilities and obligations that entails including the HMRC tax obligations.

Being rented to a family member makes no difference.

Exodi

https://forums.moneysavingexpert.com/discussion/comment/82024346#Comment_82024346

I was going to say the same.

The previous experience I was describing of finding a rental for my parents (2021) was similarly seen as a period of very high demand. As you mention, there were stories of queues round the block to view rentals, I had heard at the time that in an effort to beat out the competition some people were even putting down deposits and signing tenancy agreements on properties they hadn't viewed.

When I managed to find a rental for my parents, it was far from easy. I believe it was the 7th or 8th property they had tried for. I had to be on the ball, always checking newly listed properties, making sure I was the first person calling and arranging a viewing - which is why I took over the job of contacting letting agents for them, they were far too relaxed/selective at the start, which ended up in many many weeks spent spinning their wheels.

mither_2 

I have offered to act as a guaantor and he got shortlisted on one property so I filled out all the forms and then they gave it to someone else. I can keep filling out thse forms as I'm told my salary more than meets their requirements but he is up against working couples and so it hasn't helped so far i.e. the landlord has taken these rather than a single 74 year old. Their algorithm goes against him even though he has two guaranteed incomes sources (state pension & private pension).

If you/he wants to find a property, and as you identify he may not be the ideal tenant (according to them), you will need to work much harder. If you have only done the process on a single property you're unfortunately not trying anywhere near hard enough.

I have no doubt he will find a rental.