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QUESTION have bought my mothers house from her ,Which requires a bit of updating and sorting out .? when i spoke to bank about getting a remorgage they asked if i lived there if not then i am not intitled , Unless i get a signiture from my mother ? why
16-02-2007, 14:26 PM
Your problem is that I asume your mother is still living there. Many mortgage lenders assume that the only people who want mortgages are owner occupiers so to them, in their ivory towers, they cannot see why anyone should want to secure a loan on a property which they own but do not live in! Fortunately, more enlightened finance companies offer BTL mortgages, so you can buy a house on which a mortgage loan is secured and then rent it out to a tenant.
You can make your mum a tenant therefore and get one of these mortgages. Any broker will tell you where to get one and there are adverts for such services here I expect. The mortgage company will not investigate what rent you are actually charge your mother so you can make it exactly what you want, but do get some accountancy advice before doing so. Then you will be aware of all the implications if she actually pays you less than a market rent for the property.
16-02-2007, 18:41 PM
You might need to be careful re even a Buy To Let mortgage if you intend for your mother to continue living in the property because quite often these companies don't allow you to let to very close relative and so you might be very restricted in who you can apply to.
16-02-2007, 18:55 PM
Good point - and a lot require you to have rental income of 125% of the mortgage payment - obviously causing difficulties if you are going to charge your mum a nominal fee!
As a point of note, I would memorialise your new tenant/landlord relationship with your mother in contract anyway - safer for both parties.
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