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Robert Jones

Buying parents House and renting back to them

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Hi All,

 

Could really do we some advise here.

 

I'd hoped that I could purchase my parents house in order that it would give a cash injection for them and that they would rent it back from me to service the mortgage.

 

At first I thought this was a win win situation, as I would get a start on the property investment ladder with secure, trustworthy tenants and of course my parents get to stay in their home and receive a nice cash injection.

 

at first look it would now seem that getting a BTL mortgage will be difficult due to a change in regulation.

 

Is there any other ways to approach this or are there still mortgages available based on this situation?

 

Thanks all and any help,guidance will be appreciated.

 

kind regards

 

Rob J

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When you say about the change in regulation, is that due to a number of BTL mortgages not allowing you to rent back to your own family?

I'm sure this can't be an unusual scenario so hopefully someone would be able to give advice of a lender.


TPH-Chris-Barnard.jpg

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First of all it is a sale and rent back (SARB) which can only be done if you are FCA regulated. Secondly as the tenants are related to you then it is a regulated mortgage contract and after a regulation change last April these are difficult/ impossible to get.

 

The SARB is main issue.


Regards Simon

Searchlight Finance Ltd

T:01565 654005

Based in Cheshire and clients throughout the UK. Landlord and specialist property finance advisor only dealing with investors, landlords and developers.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

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