Buying a flat late in life to Rent/pass on

[Greatcheeser]

We are in our mid fifties and live in rented accommodation. We have around 50k in savings. We have - as I type - a healthy income but I baulk at taking out a massive mortgage for the last ten years of my earning life to buy our own home.

I see nice flats in the City Centre selling for 115-130k, and renting for 800-900 per month.

It seems too simple to then use use say 40k of our savings as a deposit for our younger son to buy one of these flats, approx morgage £500 per month so that we can enjoy the income and he can have the flat with his brother on our demise?

What are the day to day expenses of letting? Agents fees, ground rents etc?

What level of profit would a decent landlord expect to achieve while maintaining decent proprty and protecting themselves from damages and other pitfalls?

Lots of buy to let mortgages won't allow you to rent to family members. As this would be your only mortgage there might be other options. I'd see a mortgage adviser.

It does sound a win win situation though. It's just a matter of finding the best way to do it.
You could gift them the deposit and it could be in their names. They could then pay you back informally? The mortgage people may need them to be able to say it's a gift though or it will be taken into account in the affordability assessments.

Ha Ha I wouldn't have him as a tenant in a million years
Definitely would be renting to well referenced and managed tenants - so I anticipate some costs there in terms of fees to managers/Agents.

Ah well then go for it. We made less profit in the first couple of years as we spread the arrangement fees but now it's a nice income source. Obviously with the change in interest deductions it is a lot less profitable now than it used to be, especially if you are a higher rate tax payer. You need to see a mortgage advisor and research your tax position.

We paid an agent to find a tenant but we manage it ourselves so less monthly expense. i don't think in the need for an eviction, then an agent can do anything that you can't do yourselves just as easily.