Buying a flat not in your name, help

[MrsBrianCox]

Hi, I hope you can help, I do not own a property and have never had a mortgage and really do not understand how it all works but a real life friend has ask my advice and as I have no clue I said I would turn to mumsnet

Friend has a 65 year old auntie with no children, Auntie has just sold her house and is wanting to get an interest only mortgage and get a smaller house and free up her money, so far so good, but she wants to get the mortgage in friends name although the Auntie would pay the mortgage and on her death friend could rent out or sell the house, thus friend getting all the money from the sale and the Auntie not having to use her house as funds if she ended up in a nursing home.

I have no idea what to say as, did ask friend what would happen if Auntie died and friend was then having to pay the mortgage till the house was sold? What if friend got in to debt and house was taken from Auntie as in friends name?
It all seems a bad idea but as I say I do not have a clue what to advise apart for run for the hills I don't think friend has anyone else to ask and as I don't know please advise what I should advise her.

Thanks in advance.

I don't think she'd be given a mortgage on a house registered in another name as the bank would have no security. Her name needs to appear on the deeds. Or is she asking "friend" to buy it outright and rent it out to her in which case the capital from her house sale would still be an asset for nursing hiome etc purposes and if not they may wonder where the proceeds went and if it has been deliberately hidden. There is also every possibility of a house bought now going into negative equity so it may become a liability to her. Longer term there could also be complications such as Capital Gains Tax and Inheritance Tax as friend would n't be living in the property herself and if she ever needed to claim benefits herself. At very least she needs proper legal and financial advice on this.

oh and seeing form your title it may be a flat purchased, the lease would need checking for any restrictions on subletting and who may live in the property, with or without the landlord's authorisation.

They woud have to entrer into a deed of trust, and see a solicitor to do it.