Buying a property for parents to live in

[motherofawhirlwind]

Hoping someone has done this and can advise!

Looking to buy a property for our parents to live in full time. Mortgage advisor said to buy as a 2nd home (to avoid buy to let mortgages which don't let you rent to family generally) and then don't have a tenancy agreement which would upset a normal lender.

My main question is - do we put the bills / Council Tax in their name or ours? Am thinking they'll need something in their name for registering with GP etc but does that then cause issues for us somehow?

Has anyone else done this and how did you handle it please?

Are they paying rent to you, if so it is a tenancy regardless. It seems odd advice, you would be liable for higher stamp duty and council tax if done in your name.

LIZS they may pay something small towards the mortgage but not full market rent, no. We can afford the mortgage on our salaries alone. The bills will be all them.

If it's a tenancy then you will have certain legal obligations as a landlord and have to pay tax on the rent etc.
Martin Lewis' Money Saving Expert Housing Forum seems to have answers to this sort of thing: forums.moneysavingexpert.com/forumdisplay.php?f=16

Do your parents already live in their own home, or do they rent?

Bit outing to say what the current situation is but they don't own a property currently or rent, don't pay Council Tax or utilities, not on electoral roll, etc. but it's not sustainable to stay in that situation any longer, they need a proper home.