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Buying my parents house.

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  • Buying my parents house.

    Hi guys, this is my first post. Any help greatly appreciated.

    My parents would like me to buy their house, and then rent it back to them. This would greatly reduce their monthly out goings as they are currently paying about £1700 a month on mortgage repayments and the going rent per month on a house in their are is £800-900. I would buy the house to cover their mortgage, about 85% of the market value. I would have a buy to let mortgage because I am currently at university and have no income of a sizeable amount. There are 3 questions that I have thought of.

    1. Is this allowed?
    2. Can my parents stand guarantor on the house through income alone?
    3. Since the house is still my residence does that make it more possible than if I was buying them a new house?

    Thanks in advance

  • #2
    It's an interesting concept because it would get you on the property ladder. A good thing. But, I think I'd seek the advice of a good solicitor to see what the ins and outs would be on such a deal. There are probably tax implications he could also advise you on too. Let us know, ok?

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    • #3
      I've never thought about arrangements like that, and would be interested in knowing the tax implications, as well. If it is allowable, it could be a good thing all around.

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      • #4
        I think that it is great that you are willing to go to this length to help your parents. It would help you out to in the end. But I would agree with the above poster and check with someone who would know more on how this would all work.

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        • #5
          Thanks for the replies, I've got some contact details of some brokers who can help and I am going to see a financial advisor in the next 10 days or so. Since it is my official residence for the next 2 years while I am at uni I know there is some Capital Gains Tax benefits and since my parents will be paying rent to the value of 100-120% of the repayments there should be no problem with the FSA or any kind of benefits that they may need in the future. I will keep you updated!

          MailMan

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          • #6
            Glad to hear that you have found someone that can help you through all this. I think that this is just awesome of you to do for your parents. Good luck and let us know how it all works out.

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            • #7
              I'm sure I've heard of this done before, but your big problem I think would be getting a mortgage. Because you suggest no stable income, I'm left wondering how you'd plan to afford a mortgage while at Uni??

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