Can I mortgage house to help DD

Reported

I may be wrong but I remember someone telling me that when renting to a relative HB is not paid please check on that I may be wrong,the rules have changed so much over the last few years.

Message deleted by Gransnet. Here's a link to our Talk Guidelines.

A person who is a family member can claim HB under certain circumstances, I think.

It has to be a proper tenancy, the deposit has to be protected, and you have to be charging the market rent. So you're a "proper" landlord. If you're in Wales, you'll also need to register under the Rent Act 2016.

Bear in mind as well that the council will cap the HB according to how many bedrooms are needed (it's called the LHA).

Also, if your relative is already claiming benefits and qualifies for HB at the moment, a new claim for HB may trigger a move to Universal Credit.

Check the Shelter website.

Deprivation of assets? Things happen

With a few years' worths of tax returns to prove that you make a consistent wage on DD, you may be able to get a bank to give you a mortgage. A bank might have a problem because you are essentially your own boss, and DD is your only customer. That makes for a very precarious business situation. I would suggest you go to a mortgage adviser, though. They could help you find a suitable option for your concerns. I worked with someone from Mortgage Advice Birmingham, and I got all of my questions answered until the last day.

Definitely find a financial advisor, ours has been absolutely worth his payment. I have just given my daughter just under half of her house purchase price obtained by a lifetime mortgage on my house. She has a growing business but also has some benefits. The only mortgage we could get was a joint one between her and me which had to be paid off in 10 years so before I am 80. The mortgage companies will not accept a buy to let if you are intending to put a family member in, due to the risk of them not paying the rent but you not feeling you can evict them. Also any money you put up, you will have to sign to say it is a gift not a loan.

It was really the only way, because although she has a long good record of paying her rent, when her landlord decided to sell that house it was impossible to find another house to rent for her and my DGS. Too many people going for each house and the benefits meant she was never getting offered one.

It has been the right way forward for us, but you definitely need to have an expert talk all the options through with you.

Reported.

Not you, Lyndylou