Renting from my dad

[Hellothere19999]

Curious as to whether this could work:
My dad has always had well paid jobs in computing. He owns our family (small) farm and I imagine his mortgage is almost paid off (he is late 50’s). I have found a house that I love, currently renting but this house is £200,000. I have some money saved for a deposit but like most people my age, would need some help from my parents towards a deposit. I’m just curious as to whether a man my fathers age would be able to take out a mortgage for this house in his name but I would rent from him and effectively pay it off. Or would there be a better way of going about it ?

My question was mostly just would it work out better or easier for him to buy it and me rent from him or him help towards the deposit. I’ve then been called cheeky and apparently I’m a super rare breed of 30 year old who needs help from their parents to put down a deposit. I’m not annoyed tbh, I find mumsnet quite hilarious.

I had a buy to let mortgage a few years ago and the terms of the mortgage specifically stated that I was not allowed to rent he house to family members so you might want to check that.
I'm in my 30s and own my house and have had no help from any family members and the same for all my friends the same age so it's not common where I am to have family help to buy a house.

Thank you @TiddyTid this is the kind of advice I was looking for from someone who knows abit more than me. Cheers!

Some banks do Helping Hand mortgages - or they used to!

@Hellothere19999

My question was mostly just would it work out better or easier for him to buy it and me rent from him or him help towards the deposit. I’ve then been called cheeky and apparently I’m a super rare breed of 30 year old who needs help from their parents to put down a deposit. I’m not annoyed tbh, I find mumsnet quite hilarious.

What do you expect when you post nothing about having discussed this with your df nor the fact that he's offered to help and has done so with a sibling.

If he's already helped one out I assume he is much more financially astute than you are so perhaps talk through the options with him rather than ask advice on SM without giving any of the relevant facts.

www.lloydsbank.com/mortgages/first-time-buyers/lend-a-hand.html

www.barclays.co.uk/mortgages/family-springboard-mortgage/

www.halifax.co.uk/mortgages/family-boost.html

Take a look at these

Hahahaha omg

Thank you @NewSummer 😁

@titchy why do I have to post all that to not be called cheeky? Other posters have managed to just give advice without throwing insults and assumptions about

He would have to pay tax on the rent you pay.
Would be more sensible to hove tou the money you beed snd if necessary raise it by mortgaging his own property.

Thanks @EmmanuelleMakro ! Looking at what @NewSummer looks a lot more suitable!

I think buy to let mortgages have very expensive rates, the insurance is complicated. He would have to declare it on his tax return. Also the reality of inheritance tax one day..... I just think for all concerned he would be better off helping you with a deposit and you could pay him back or give him rent. Whatever works best for you both.

If you were made redundant you could still move out, rent it and give him the rent. By right you would have to tell the morgage company for their approval.

If you couldn't get a morgage, that is different then you probably have to go buy to let

Why do other people think it is so cheeky? Wouldn't we all help/ be helped if we could?

I said upthread the only way a buy to let would work is with a regulated buy to let mortgage. Stamp duty would be 6k. Your DF would have to charge you very near full market rent. Mortgage fees are quite high. I asked how much is your deposit because then it’s possible to see how much the mortgage would be and therefore the rental requirement made by the lender. A proper tenancy would need to be drawn up, your DF would take on all the duties of a landlord and then pay tax on the rental income.

@2021ishere2021 thank you 🙏🏼 Yeah I dunno lol, I just read the comments back and it just spirals into accusations etc. Some people have nothing better to do I guess 🤷🏻‍♀️

I was helped with a deposit. The person helping had to sign that they don't want the money back for the mortgage company. You could of course sign that but have your own personal agreement.
I think the renting situation sounds complicated.

Thank you @cupofdecaf

I had £4.5 k from my parents, my 10% deposit was £41,800 and I live in the SE, so yeah most people I know get a least some help. Then you stamp duty and solicitors fees.

I'd rather buy it in my name, if he died it would be complex or if you want to marry/ have kids and your DP contributes and then you spilt.

If your father gets the mortgage the house will be in his name, you will be renting still and he gets the property

Sure,y you are better asking for help with the deposit and you buying a house

Also you’ll need 35/40% deposit.