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Relatives paying my mortgage and staying in my house.

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Beav1s
Beav1s Posts: 1 Newbie
in House buying, renting & selling
Hi. My wife and i have a mortgage on our house which we have 9 years left(repayment). Basically my father died two years ago and we're moving into my parents house(paid off) to care for my elderly mum who is 87. We've had a granny annex built on the back of her house and we will move into the main house. We will split the bills etc. Our intention is for my wife's parents to move into our house and just cover the mortgage and bills. I appreciate my wife's parents will have to pay tax on the mortgage payments as we are making a gain from them paying off our mortgage and I expect we will have to change our mortgage from a repayment etc. Are there any other things we need to look into please. I work full time and my wife works part time but she will be reducing her hours to care for my mum who has poor eye sight, frail and hard of hearing. Thanks in advance.

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  • Marvel1
    Marvel1 Posts: 7,172 Forumite
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    Links from the stick post, G_M has a few other links also.

    A Tenant's guide to renting

    RENTING? Check your LL has permission to let that property.

    Letting out your property? Top Tips from the Forum
  • Fireflyaway
    Fireflyaway Posts: 2,766 Forumite
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    I think its great you are helping your parents, a lot of folks wouldn't ! So aside from the fact you are dealing with your parents, what you are essentially doing is renting out your house? So tell your mortgage company to ensure you have permission and remember to get the correct insurance and alter the electoral register. I'd also get some sort of document drawn up to state who is responsible for repairs, are alterations allowed, what notice is required etc. Basically a tenancy agreement! Seems harsh seeing as its your folks but things change and you need to avoid disagreement further down the line.
    In relation to your wife it may be worth looking into carers allowance and attendance allowance for your mum. Depends what your wife earns and how many hours she will be a carer for.
    Good luck with everything.
  • Keep_pedalling
    Keep_pedalling Posts: 16,625 Forumite
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    Your in laws will not have a tax liability, you will.
  • Mojisola
    Mojisola Posts: 35,557 Forumite
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    Beav1s wrote: »
    Our intention is for my wife's parents to move into our house and just cover the mortgage and bills.

    I appreciate my wife's parents will have to pay tax on the mortgage payments as we are making a gain from them paying off our mortgage and I expect we will have to change our mortgage from a repayment etc.

    Why?

    You are going to be landlords, renting your house out to your parents in law. Why would they be paying tax on the rent they pay to you?
  • theartfullodger
    theartfullodger Posts: 14,599 Forumite
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    Probable mortgage fraud:

    Could be repossessed (unlikely, sadly).

    Suggest you read your mortgage terms & conditions then write to (yes, WRITE - keep copy) to your lender.
  • McKneff
    McKneff Posts: 38,823 Forumite
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    They are not paying the mortgage.
    They are paying you rent.
    You are paying the mortgage
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • G_M
    G_M Posts: 51,977 Forumite
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    They will be your tenants, so read:

    * New landlords: advice, information & links

    from this thread here:

    Tenancies in Eng/Wales: Guides for landlords and tenants
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