Buying a house - for a relative

bazooka_2

Hi,

It has been suggested from a respondent I should re-mail my original question (in the buying forum) to here. So I have done so (Thanks to them btw).

Any help greatly appreciated

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Recently we found out my b-in-law has terminal cancer. So he came to stay with my wife and I (having got him out of a crappy council flat in London) so she could look after him.

Having completed his chemo & radio he is feeling better and wants to get a place of his own (although his long term prognosis is obviously not good!!).

We all agree it makes sense to keep him close by so we can continue to care for him.

Having looked @ finances we think we can afford about a 20k dep on something around 120k ourselves. We also think we can cover a normal mortgage ourselves (£500'ish on 20yrs interest only).

We are not interested in getting the DSS to pay for anything (we can do it ourselves) & we don't want to buy a property as a buy-to-let.

So my question is - can we just buy another property for him to live in as a 'normal' property without it being classed as a buy-to-let or anything daft like that & without the taxman getting involved (remember we're not charging rent)?

Will the mortgage companies give us any grief over this?

Any advice or good tips greatly appreciated

Thanks

UK007BullDog

You need to post more info like I asked in your original post. Only then can we give you better tips.

UK007BullDog

As your brother in law is family you can get a residential mortgage on the property.

You need at least 10% deposit.

Your income needs to cover all your outgoings including the second mortgage.

Do you currently have a mortgage?

I need to know your income (gross, before tax), your debts (mortgage, loans, CC's and hire purchases). Any savings?

What is the value of your home you live in if it is yours. A mortgage on it?

I am asking as you as you have a number of options open to you.

UK007BullDog

Just because you think you can afford it does not mean the lender will agree with you.

UK007BullDog

£500 per month interest only is about £100,000 borrowing at a rate of 6%.

But it will depend on your income and outgoings.

depending on the value of your property you might be able to release equity and buy the other property outright. But again this depends on your income, outgoings and age (for the term of the mortgage).