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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:
Appleofmyeye2023 · 10/06/2023 10:31

I’d also add, based on updates, if he’s loosing deposit one of 2 things are happening

  1. he’s not looking after the places he’s renting properly in accordance to his contract - just the person granny wants to let out a property to
  2. hes not rented from legal landlords that have provided a proper tenancy and used the gov deposit system - tell him to get his head screwed on properly and stop renting shit places form shit, illegal, landlords
  3. hes not properly used the gov deposit scheme where disputes on deposit withholding can be adjudicated. Again more fool him

i suspect the first is way more likely. especially as you say it’s happened more than once 🤷🏼‍♀️

Original poster
Chatice · 10/06/2023 10:36

Some people were rude and jumped to negative conclusions. Didn’t even bother to read my original short post. As I said this, isn’t AIBU.

@Toooldtoworry thanks. She may have to - or simply want to sell it (towards care fees for example). It’s not a permanent solution. But even if it’s just for a few years it might help him. Good advice re. a proper legal letting document.

My son could become unemployed of course, but he is a bit fanatical about working - working non stop for 3 years (no holiday even) so I can’t imagine it would be for long …. but still something that needs to be addressed.

Ever tried to get a deposit out of a cowboy private letting agent aged 21 months esp when you have ADHD procrastination issues ?! (to the PP who poo-pop’s that). I had to do it for myself 10 years ago and it was rubbish even with my single minded determination and life experience.

Anyway, thanks for those who have tried to offer constructive advice and food for thought. x

OP posts:
Original poster
Chatice · 10/06/2023 10:38

21 years. @Appleofmyeye2023 if you’re poor sometimes you have to use rubbish letting agents! I saw the 2 flats before he left them they were fine.

OP posts:
Savoury · 10/06/2023 10:39

Where is your new thread @ShoshanaShapiro - looks interesting

Flossflower · 10/06/2023 10:41

As an ‘older person’ I think what you are asking is a terrible cheek. I thing a BTL comes with responsibilities that you don’t want in old age. You might say you would deal with these, but maybe Granny doesn’t want you managing her assets. I don’t know what you think 120k will buy in the south!! There are so many what ifs about what happens in the future. I am sure Granny would have done this already if she had wanted to.

Iusedtoliveinsanfrancisco · 10/06/2023 10:41

If she bought for £120K the rent would need to be around £600 a month to cover interest lost, council tax, landlord expenses and repairs. Would that work?

Original poster
Chatice · 10/06/2023 10:41

Anyway, I’m leaving the thread now. Some of the negative assumptions are irritating me.

OP posts:
Flopsythebunny · 10/06/2023 10:42

I would do it for all my grandchildren.

bonjour75 · 10/06/2023 10:42

Would you offer to be the guarantor so if he can't pay rent, you are obliged to do so, so she doesn't miss out on money?

forgotmyusername1 · 10/06/2023 10:43

Assuming granny is elderly would they ever see that money again? If they wanted to go on a round the world cruise for 6 months would you be OK with them selling the property?

HerbsandSpices · 10/06/2023 10:43

Flopsythebunny · 10/06/2023 10:42

I would do it for all my grandchildren.

If you can afford to do it for all grandchildren, you must be better off than many. Can you be my grandma? ;-)

lionsleepstonight · 10/06/2023 10:47

I cant see why not. Cash buyer she can rent to who she likes.

She could even then leave it him in her will.

(Said just to freak out that poster who's outraged about the unfairness of inheritance).

Florissant · 10/06/2023 11:01

BonnieGlasses · 10/06/2023 10:10

Nobody has been rude or angry. Confused

Show quote history

Agreed.

IMustDoMoreExercise · 10/06/2023 11:21

I would do it if I could for my grandchild especially as he is the only grandchild.

Showdogworkingdog · 10/06/2023 11:46

My DM and DSis kind of did this, albeit 10 yeas ago when prices were less than they are now. DM supplied a big deposit and DSis got a mortgage for the rest.

My DSis (a single parent) pays the mortgage plus a rental to DM. She set it up after DSis lived in a series of overpriced hovels, the last of which was so damp it gave my youngest niece breathing difficulties. It’s been an investment for both of them and has worked well I think, but it was something DM wanted to do. My DM had previously owned a btl but she’d had a couple of unreliable tenants so she sold her rental property and bought this one with my DSis.

My DM was mindful of how she did this for fairness and I don’t think it would’ve worked if there was any jealousy or other resentments. It’s a relief for all of us that DSis and her DDs haven’t had to rent shitholes and my DM hasn’t had a series of crappy tenants for the last ten years.

Indecisive20 · 10/06/2023 12:12

If a studio is about £120k then would it not be better to see if your mum would lend your son a deposit, if he has a secure job and can afford the rent then a mortgage should be an option providing he has deposit. A £12k outlay for your mum is a much smaller ask, especially if he could pay it back over time.

WonderDays · 10/06/2023 12:23

I have done this for my DS, I had to pay second home stamp duty.

He was early 30’s at the time and stuck in a horrible rented room in a house and I could see his mental health was suffering.

WonderDays · 10/06/2023 12:25

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
This isn’t true, there are some lenders who will let you rent to a family member.

Preps · 10/06/2023 12:27

It's something I've considered for my own son, but there are pitfalls. E.g. he can pay the rent easily now, but what if that changes or he chooses not to on the basis granny won't chuck him out? What if he doesn't keep the place to granny's standards? What happens when granny dies and her assets are distributed?

I think if yiu have that sort of relationship it can be discussed, but if you're worried about even raising it, probably not.

Changingplace · 11/06/2023 00:23

Ever tried to get a deposit out of a cowboy private letting agent aged 21 months esp when you have ADHD procrastination issues ?! (to the PP who poo-pop’s that). I had to do it for myself 10 years ago and it was rubbish even with my single minded determination and life experience.

Deposits now have to be held in a protected scheme, if they’re not you can claim £££ against the letting agent/landlord.

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