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    • Property-a-holics

    Buying a property for family member

    Replies 3 Views 727 Activity 5 months ago Users 3
    Go to first unread post
    Adam_ 4 Feb at 13:27

    I've been thinking of a way of helping out a young family member get on the property ladder in about 3 years or so.

    Is it possible to buy a property and have them rent it from you so that when they meet the other half of their dreams they can both get their FTB allowance?

    If I understand correctly if there's a BTL mortgage involved then the mortgage co. won't like you renting to a family member but if the property were purchased for cash then there won't be that problem.

    Ultimate aim is to gift it to them (7 year ruling of course) at some point in the future. Not looking to get involved in trusts at all.

    Just thinking out loud at the moment, very early stages of future planning but this popped into my head so thought I'd let the PT'ers that may have done this hopefully give some feedback?

    Thanks.

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    douglas lambourne 4 Feb at 13:44

    If you already own a home, buying it in your name will incur the new level of stamp duty.

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    Adam_ to douglas lambourne 4 Feb at 13:45

    Hi Douglas, yep, that's one of the problems, but the family member losing their FTB 'bung' from the Govt. (if it doesn't get pulled) when the time for them comes to buy may be more of an issue.


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    John Stallan Property Tribes Financial Services 4 Feb at 15:44

    There are some lenders who will allow you a BTL mortgage where a family member resides in the property. Those that do, generally base the level of borrowing on 'affordability' similar to that of a residential mortgage although you have to prove you can finance the running of 2 homes rather than just the 1.

    Mansfield BS offer a Family BTL product that's based on rental income, although I think it does stipulate 'close family' members within the criteria.

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