Can I let my parents live with me rent free?

[Vienna007]

So I’m finally getting myself into the property ladder with help from my parents, who are gifting me some money for a deposit. I have a residential mortage and everything is under my name. I want to know the rules if my parents or partner moves in with me. Will there be implications with the mortage/ tax? As long as we all pay council tax or are there other implications involved since they have gifted me money. They don’t intend to gain any money back as is a gift. I just want to make sure they are allowed to live with me in the future if needed.

Thanks so much!

No issues with anyone living with you as long as council tax is notified you arent a single occupier anymore. And of course home insurance

Your mortgage provider will probably have concerns over a gifted deposit coming from people who will be coming to live with you.

The gift is to help me get on the property ladder. And in relation to the gift, they have signed a declaration form stating the money is not a loan and they have no interest in getting it back. So would it ok if they don’t have any legal financial interests in the property?

Ask your lender.

Don’t worry!
It’s a gift legally end of
You can have them in and tell council that’s all

Enjoy

Too many people worry and too many want to point out rules for no reason

One thing I can think of is implications of inheritance tax. Assuming they made the gift out of their capital rather than their income: the gift remains part of their estate for inheritance tax

There is a taper relief, so if they life for seven years after the gift was made, it would no longer be considered part of their estate and there would be no inheritance tax to be paid as part of their estate.

the gift won't matter if they live 7 years

also the gift doesn't matter for mortgage purposes - I presume they checked to the nth degree where the money came from as they usually do.

what you might have to do is tell your mortgage company and home insurer if any occupants of the house change. And of course, the council.