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Original poster

Ask granny to do buy-to-let for her adult grandson?

70 replies

Chatice · 10/06/2023 09:09

My mother is pretty well-off. (I’m not)

My adult son (early 20s) has had a succession of rubbish landlords and letting agents who charge a fortune in my part of the world in the South for places little better than hovels. Also letting agents not returning significant £££ deposits. I also strongly suspect ADHD, so all this moving is extra chaos for him. He works full-time and could pay his granny rent every month no problem and she could keep her capital.

Do people think this could work? Any experience of it? Possible downsides? Of course granny could easily say “no” anyway but I am thinking of asking.

OP posts:
catsnhats11 · 10/06/2023 09:13

Does she already have a property let out? If not buying a BTL and being a LL is a lot of work and stress, letting to a family member is even more complex (would she be willing to evict him if he didn't pay rent). It would probably be easier to gift him some money, if she wants to help.

MoveOnTheCards · 10/06/2023 09:14

Also is she wealthy enough to be a cash buyer? Mortgage might be hard to secure depending on age and work circumstances.

Plus would she be able to cover any care costs in the future or would she need to sell the property, therefore evict?

Prettypaisleyslippers · 10/06/2023 09:19

Cash buyer possibly, however will need money to cover legal and stamp duty costs. BTL mortgages are mostly interest only, around 4.7%, so not much profit, if any at the moment.

WunWun · 10/06/2023 09:22

I don't think you can ask anyone to buy a house for your child to live in unless they're an actual multi millionaire and they're mentioned it in the past.

HettySunshine · 10/06/2023 09:22

If she uses a buy to let mortgage, she cannot let the property to family. If she's a cash buyer then obviously, this wouldn't be an issue.

Soontobe60 · 10/06/2023 09:22

You’ve not indicated if she would be a cash buyer or require a mortgage. If the former, then she isn’t keeping her capital, as it’ll be invested in property. There will be tax implications for her in regards to the rental income.
You’ve said he’s had trouble getting his deposit back etc - are you sure he’s not actually trashing his rentals? Would granny be ok leaving him to it or would she constantly be popping round to check up on her investment?

YorkieTheRabbit · 10/06/2023 09:24

It’s a huge ask. As others have mentioned, stamp duty, legal fees plus any repair costs.
What are property prices like where you are? You could be asking your mum to stump up a significant amount of money.

Changingplace · 10/06/2023 09:25

Wouldn’t it be easier to ask if she could gift him a deposit for his own place and he gets a mortgage?

ilovesooty · 10/06/2023 09:25

If your son's an adult he could ask her himself.

I don't think it's something that you should be asking her to do though.

GalileoHumpkins · 10/06/2023 09:29

You want your mother to buy a property to rent to your son? Ballsy!!

HeddaGarbled · 10/06/2023 09:29

@WunWun

I don't think you can ask anyone to buy a house for your child to live in unless they're an actual multi millionaire and they're mentioned it in the past

I agree with this.

Frenchfancy · 10/06/2023 09:33

Does she have other grandchildren? Unless she can afford to do it for all of them yabu

Fatkittythinkitty · 10/06/2023 09:35

WunWun · 10/06/2023 09:22

I don't think you can ask anyone to buy a house for your child to live in unless they're an actual multi millionaire and they're mentioned it in the past.

This. There's no way I'd ask such a huge favour unless the circumstances were like this

CatsOnTheChair · 10/06/2023 09:36

She wouldn't get a BTL mortgage that would allow family to be a tenant, I don't think. So, would need to be a cash buyer.
Can she do this for every grandchild?

angelopal · 10/06/2023 09:37

What happens if she needs care in the future. She would potentially have to sell up to afford it.

Gardenbloom · 10/06/2023 09:37

I think this is one of those things that has to be offered, not asked for tbh.

Starlitexpress · 10/06/2023 09:43

Who is going to pay the solicitors costs, stamp duty, mortgage fees, getting house tenant ready (gas and electrics up to date etc)?

Whowhatwherewhenwhy1 · 10/06/2023 09:47

Does she have other grandchildren? Could she treat them all equally? Why should your son get special treatment over the other grandchildren who most likely could also benefit from a buy to let?

Original poster
Chatice · 10/06/2023 09:49

Oh yes she’d be a cash buyer - were talking a studio or small flat for probably around £120k.

OP posts:
Original poster
Chatice · 10/06/2023 09:50

Re. care costs, obviously it’s still her asset so she could sell it to pay for care.

OP posts:
Original poster
Chatice · 10/06/2023 09:51

They’re not buying the flat for him to PP, it remains theirs and they get rent!

OP posts:
Tudorfish · 10/06/2023 09:51

I think the not renting to family members only applies if they are claiming housing benefit.

Original poster
Chatice · 10/06/2023 09:51

No other grandchildren.

OP posts:
Original poster
Chatice · 10/06/2023 09:53

I’m not sure why so many people are jumping to such negative conclusions (that aren’t even true!).

OP posts:
sassyduck · 10/06/2023 09:53

It's worth asking. Not a bad idea in the circumstances.

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