Joint Parent & YP flat purchase?.

[TirednessOnToast]

Can a parent (age 60, I'll health pension topped up by UC) purchase a modest flat (ie £70k) if the parent took out a mortgage of say 50k and the young people supplied the deposit between them?
Obviously have to check with UC (& also Taxman?) but would it be possible in theory? The YP ate not mortgageable in themselves. I would prefer it if they were on the deeds. This is in Scotland however so I understand they have the right to inherit parental property anyway.

Bump

Huh?

not enough details to be clear however:

yes combinations of people can buy property.

would you all be living there? If so this is quite common these days (multigenerational living).

if not, then who would be living there? If young person then either the parent buys for cash or the more common scenario is that parent gifts the deposit and young person needs to get a mortgage so needs to be in work of some description,

I’m not familiar with UC so can’t comment on that

Hi @Octavia64 sorry if unclear.
Neither YP is likely to be mortgageable (both have SN, but not enough to qualify for assisted living. Idea is fir YP to share a modest flat for some independence.
Parent could get a small mortgage but doesn't have 20k deposit. YP do in combined savings. So parent would take on mortgage but YP live there?

I think you just need a bog standard mortgage in your name, tbh.

I've just done a Family Springboard Mortgage for my son, with Barclays. But he is working, and the mortgage and the property is solely in his name, but I provided a 10% lump sum that Barclays hold as collateral for 5 years (and pay me a good int rate).

I know this is a bit different, as you are saying that your children can't take on the mortgage, I presume they aren't working?

Fwiw, most mortgage lenders would only give you a 7 year term, and the monthly repayment at 5% would be £707 per month. Is this manageable? Bearing in mind there would be a myriad of other monthly bills for this property. What is your annual income?

If you already own another property there might be stamp duty implications.

If you don't live in the property there might be issues with the mortgage - if you read the small print, you are stating you are buying the property to live in. I don't know what the difference would be if you don't live there.

You could say you do live there but then that could have issues for your own home if you own it. I think after 3 years, it becomes liable for capital gains tax if you sell it.

If your DC have benefit income that is likely to be 'permanent' then they might qualify for a mortgage given that they have a good deposit and the payments are likely to be quite on £50k - on paper they would be able to afford it, I'd look for a specialist mortgage broker to ask about the availability of mortgages that take account of all sources of income - after all, some benefit income is more reliable than that from employment where they could lose their job the day after the mortgage completes.