Both of my parents are now in their 70's.
Their house is mortgage free and they are wanting to sell it to me and then rent it back from me.
Their house has a current market value of £150k (based on sales of similar properties). I am happy to pay £150k for the house
Our plan is to then set up an AST as normal, and I would charge my parents a market rent of £100 per week (based on similar rents on my other btl properties)
Can anyone clarify the following...
1. If my parents were taken into care due to poor health at some later date would they have to use their £150k savings (from the sale of the house) to pay for their care?
2. What tax implications would there be for me as a landlord? (I would declare the rental income on my land/property tax return)
3.Is it true that HMRC now allow lettings relief of £40k on 'dependant relatives' who have rented from you? (I have recently read this in a members article by James Bailey from property tax portal)