Buying house for parent

[44Seahorses]

Hello,
I want to buy a house for my mum to live in. She currently rents and has little financial security. I live in a house my husband owns outright, solely in his name. I've never bought a property. I wouldn't be charging my mum to live in the house, though she would pay bills and council tax.

Looking into it, it seems I can't get a standard mortgage for a house I won't live in, but I can't get a buy to let for a close family member.

Can anyone advise if there is a way around this? Could I put her on the mortgage even though she doesn't have much income and won't be paying it, and would that make it all above board?

It all seems unnecessarily restrictive. What would be the consequences of getting a normal mortgage and then just letting her live there?

Thank you

a relative she effectively cares for and who lives with her is in receipt of disability benefits, if that would make a difference. This relative currently receives housing benefit but would not claim it in the event of living rent free of course

Is the current tenancy hers or this relatives? It looks like they'll both move to this tenancy?
Is your husband on board with this plan?

Unfortunately if you are married the system will treat this as a second home and you won't be a first time buyer (the flip side is that your husband's property is a joint asset under English law)

Some good information here, thanks.

To clarify, what I meant by not legal/ by the book is just getting a standard mortgage. I didn't realise it would be specialist case IYSWIM.

@implantreplace - do you mean my mum would be unlikely to get a mortgage? Or me?

The current tenancy is in both their names I believe. And yes, they'll both be moving to this property. I hadn't planned to do anything formal with tenancy agreements etc. Should I, even if they aren't paying rent.

Yes, husband is on board.

Thanks for the confirmation about the FTB situation- I've not been able to clarify that point previously.

In relation to marital assets should we split, its highly unlikely my husband would want any portion of this property. We'd split as we came into the marriage. No children to consider or anything.

Your mother
She’s a renter and fact you are wanting to buy would indicate she perhaps doesn’t have savings or a high income

Thanks for clarifying, I wasn't sure if you were suggesting I'd struggle to find a mortgage of this type

As you do not currently own property you will not be liable for the stamp duty uplift for second property

I stand corrected, this changed in 01/2021 as previous posters have mentioned

I think I'd want some form of agreement written up with regards to upkeep, decoration, maintenance what happens on death of either of the three parties involved. Just so you aren't arguing over who needs to pay for a replacement fence the fence when it blows over or who pays for painting and decorating, or who chooses the new kitchen units etc etc.

Sorry to raise this point OP, but if anything happened to your mum would you be happy with the other tenant staying in the property? Would you want to charge them?

Just wondering if you could reverse the situation...take out the mortgage on your husband's home instead, becoming joint tenants in the process, and use the borrowed money plus your deposit to buy the property for your mum outright? Would that work better, if the maths adds up?

I suppose it would be sensible to have a written agreement in place, at least to make sure its all communicated properly.

I'd likely sell it again ChicCroissant. No great desire to be an landlord

Don't think my husband would go for remortgaging this place. Part of the reason for doing it this way is to take him out of the equation somewhat.

@44Seahorses

Thanks for clarifying, I wasn't sure if you were suggesting I'd struggle to find a mortgage of this type

Of what type?

You’re getting a mortgage for what will be considered a second property

The fact you’re mother living their rent free is irrelevant to the mortgage company because it’s not a buy to let

As for whether you’ll struggle, I have no idea of the detail of your financial circumstances… so no idea

My point was based on what you’ve said about your mother… she is very unlikely to get any kind of mortgage