Buying a rental flat for family member to live in

[pecorina]

Currently live in London but probably need to move overseas to work. Earn enough to buy but not keen on buying in London in the current market and also aware that I'd need to get such a huge mortgage it would be a burden.

My brother is a doctor and renting in the city I went to university. I love the place and long term plan on moving back. I can easily afford a 1 bedroom flat there with an OK mortgage.

I want to be on the property ladder in the UK. Would I be mad to buy a flat and then rent it out to my brother at a reduced rate (but enough to cover the mortgage etc). I'd obviously get it done through a solicitor etc (I am also a lawyer but not a high street conveyancer..)

There are rules about renting to relatives - buy to let mortgages don't really like it as they are not convinced that you will get the rent as it's a relative. So just make sure you pay attention to that. Also is he long term? What if he decides to move out? Are you happy to rent to someone you don't know?
I rent out a couple properties and there are pitfalls (tenant not paying, damages, and worst refusing to move out when you want it back). Also beware of service charges on flats - my profit this year was wiped out due to a surcharge for extraordinary expenses in maintenance charges.