My wife and I are British expats and we are looking at options for property-buying in the UK. The intention is that my Mother-in-law will live in the property, while we will remain abroad.
I understand that even though the 'tenant' will be entirely reliable, as a family member, mortgage companies will most likely insist on a 25% deposit and a guaranteed minimum rent (125% of the mortgage payment, I believe). As a possible alternative, what might be the circumstances if the mother-in-law contributes to the purchase (she has a decent job and is financially stable)? If we pool salaries for a higher mortgage could we also get a residential mortgage because she will live in the property?
Thanks in advance.
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Buying property in the UK, as an expat
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- Lemon Slice
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Re: Buying property in the UK, as an expat
You will find this essentially impossible (and not because you live abroad).
Summary of the reasons are given in this article:
https://www.theguardian.com/money/2017/sep/04/can-i-buy-house-for-mum-live-rent-free-close-relatives
Summary of the reasons are given in this article:
https://www.theguardian.com/money/2017/sep/04/can-i-buy-house-for-mum-live-rent-free-close-relatives
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Re: Buying property in the UK, as an expat
Thanks for the reply, I appreciate your time.
I had seen that article, yes. It is a lot different to my situation however. The buy-to-let option is ideally my second option, I am really looking towards the residential option. My Mother-in-law has a job and a solid job history, she is only 52 and has years of work ahead of her. She would come in as an equal share owner of the property (split 3 ways with my wife and I) and that was why I thought a residential mortgage might be an option. Expat specialist mortgage brokers I have spoken with since posting this morning have suggested that it is possible, especially pooling 3 salaries but obviously paperwork would be quite complicated.
Thanks again.
I had seen that article, yes. It is a lot different to my situation however. The buy-to-let option is ideally my second option, I am really looking towards the residential option. My Mother-in-law has a job and a solid job history, she is only 52 and has years of work ahead of her. She would come in as an equal share owner of the property (split 3 ways with my wife and I) and that was why I thought a residential mortgage might be an option. Expat specialist mortgage brokers I have spoken with since posting this morning have suggested that it is possible, especially pooling 3 salaries but obviously paperwork would be quite complicated.
Thanks again.
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