I'm paying the mortgage is it renting

[penguinparty00]

I'm just about to move my elderly parents into a house I own but do not live in prior to this I was renting this property out but as my parents Heath has deteriorated and where they live is not a suitable option for them it was either this or the go into care which I did not want. The issue I'm having is I want them to feel secure there I will never need the house and I will continue to pay the mortgage however I do not want any payment from them, the deal we made was I will pay the mortgage they can pay bills ( electric & gas/ water/ council tax / broadband) but do I need to do anything to make this all happen officially / legally? Is it still classed as renting even tho I'm paying the mortgage? Do I need to declare it anywhere? Any advise would be appreciated :)

Most BTL mortgages have a clause to say you cannot allow family members to live there. You need to check with your lender.

Sorry, cross post.

It is different from renting if you aren't accepting any payment. So won't need to be declared for tax purposes. AFAIK. Depends on the terms of your mortgage as to whether your lenders would be happy with this arrangement. I cant see why not. But on the other hand they might not be happy to have sitting tenants even if they are rent free. See a solicitor.

"They put a rather sizeable amount into the house some years ago which is why I feel rent free is the best option?"

Apart from sorting it with your lender, which I see you can do, this is actually important to seek advice on.

If they had gifted you a property and you then allowed them to live there at anything less than market rent, this would be viewed as a "gift with reservation of benefits" as they would still be personally benefitting from the property. This is relevant to inheritance tax (and possibly to assessment of care fees if needed in the future).

I would hope that the fact that you have been renting this property out will help to break the link between their gifted deposit, and you now moving them in. But I would seek advice on this point, especially if the gift was less than 7 years ago but even if it was more than that I'd want to be sure. If it is within only a couple of years then I suspect - and I am not trained in this area! - that charging them anything less than market rent could produce problems in the future.

(my granny's will took ages to go through probate, nearly 30 years ago, in part because her house had been transferred into her younger son's name while she continued to live there without the relevant IHT rules at that time being correctly followed)

Charge a peppercorn rent?

If you charge them rent then would the council pay it?

@fuzzyduck1

If you charge them rent then would the council pay it?

According to the bank I don't need to charge rent I just need to look into the insurance side of it