Can I rent out my home, and buy my parents house to live?
Posted on 17 February 2014 by George
Hi there, Can I buy my parents house and keep my own. My house is worth 240K and have a 90K mortgage. My parents house is worth £500K with a £50K mortgage. They are willing to sell me theirs for £240K (price of my house) and then live in a static caravan and pay off the £50K they owe. Is there a way I can keep my house, rent it out to cover cost of my current mortgage, buy my parents house with a new mortgage and still give them the £240K? equity release on my house?
You are describing what we call in the industry a 'Let To Buy' situation. This is where a client raises capital against their current home, with a buy to let mortgage, and uses that to go towards the deposit on their new home. We are finding that this is increasingly common, and we have access to a number of residential and buy to let lenders who are comfortable with this arrangement.
As preparation it would be useful, for you to have an idea of what the monthly rent would be on your current home.
If you would like to discuss this in more detail then please contact one of our mortgage experts on 0344 346 3672.
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