No this isn't about my mum's veg patch. Ma HC has rented the same house for nigh on 15 years on a 'long term let.' The man they let off always insisted there was never any danger of them being turfed out. But then he died a couple of month back and his wife and daughter have given my mum 6 mths notice to be out.
Mum paid £6000 for a new kitchen in the property 6 months ago and she thinks when she asked if this was alright, the man and his wife knew full well he was dying of cancer. So she's a bit peed about that aswell.
Anyway, after drinking herself bonkers last nights, she's insisting today she never wants to rent ever again. There is four of us siblings. One is a GP with the salary to die for (not me unfortunately ) and me and Mr. have the good credit rating. The other two we'll just gloss over for now - but both are living with people with very rich parents if that helps!
Can anyone think of anything we can do along the lines of a buy-to-let to rent to my mum? Surely between four of us there must be something we can do? Even with mum in on it aswell, she wouldn't get a mortgage at 60 would she by herself? And does buy-to-let work. We would have a guaranteed tenant to cover the mortgage as we're talking a little 2 bed house in the village. £150,000 max and four of us to cover any shortfall. Plus I'm lucky that all four of us get on very well and that none of us would ever do the other ones over.
Any ideas? She is unlikely to want to rent normally unless desperate because she has loads of cats and rabbits.
I believe if you have rented for 15 years then your Mother has more protection by law to remain in the property. You need to seek legal advice on this matter. Mel.
Hello HC, I think it is admirable that you want to help your Mum out like this.
Yes, BTL does work. That's why there are so many people doing it!
But I think you should think very carefully before you do anything.
Here are my initial thoughts...
Have you discussed with your Mum how she will pay the rent? Will housing benefit cover it, or will there be a shortfall? How will you cover the shortfall? It might help to draw up an agreement between your siblings to formalise the arrangement.
At the end of the tenancy, will one (or more) of you buy out the others? Will this be at a future market value? Or will the house be sold? Maybe you'll all decide to keep it as an investment. These things are worth considering now, so there is no room for misunderstanding later.
I'm not sure that housing benefit will be paid when someone rents from a close family member. It's worth checking out.
Be aware that some lenders will not allow you to let to a family member (But I don't know how they police this!)
Will there be four names on the mortgage or five? If your Mum's name is on the mortgage, then she technically 'owns' part of the property. Bear in mind that the property could be sold in the event of her needed long-term care which is not state-funded. And I don't think she would qualify for housing benefit if her name was on the mortgage.
So, lots to think about HC. Let us know how you go. Good luck.
Mum and her husband still work (mum full time)even though they draw pensions.
There wouldn't be much shortfall as it wouldn't be a huge mortgage for just a two bed house. Basically when the tenancy ended for whatever reason the house would be sold with all involved taking equal share. Throughout the tenancy, there would be no maintenance type issues as her husband is as handy as can be. He did the kitchen himself at the place they're at now, and all outdoor landscaping, all joinery inside and he used to fix electricals. He's like a person shaped stanley-knife with all the little gadgets!
It does need properly looking into but we have six months before she's out. Melboy she thinks this too, and is consulting her solicitor but they never renewed the contract for years. Plus, this is somebody's house - how can Mum just live in it regardless on whether they want her to or not? And in a small village like this is, you wouldn't really want to keep living there if it needed a dispute. Personally I think the landlord's family are not at fault. It's their property and Mum knew she was renting - it never became hers just because she was there a long time. Plus they've given her six months notice which is more than reasonable. Can't help thinking the quick sale of the house adjoined helped sway their decision even if they say they want it for a family menber.
With the adjoined semi being snapped up with only a hand painted board for advertising, if they are selling they are likely to want more than we think the house is worth.
It needs a lot of updating and is very damp and the road outside floods unbelievably every time it rains heavily. But then they have fields all around them and quite substantial gardens so it's going to be more than we/mum will be able to pay. Especially when there's a couple of other 2bed semis in the village for 129k and 159k.
What happens when your Mum and her husband truly retire and are no longer earning? Will their pensions cover the shortfall? Will they still have enough to 'live on'?
You CAN charge rent to a close relative and get it paid by housing benefit. My brother-in-law does just this - he has bought a house specifically for his divorced-with-2-children-and-no-job but in his own name, and rents it to her. Her housing benefit pays the rent, which just about covers his mortgage. All legit and declared. But of course if HE sells the house he will have to pay capital gains because it's not his own place of residence.
If there has been no renewal of lease, then that makes your Mom's position more secure, as an assured shorthold tenancy protects the Landlord really, putting in writing how much notice they have agreed is reasonable and that there is a specific end to the tenancy.
Definitely get yourself some legal advice and see where you stand. If it's not her house, then she can't stay indefinitely, however she will be able to stay longer than the end of the notice without too much trouble as long as she continues paying rent, which may give you more time to buy a place for her if necessary.
Good luck.
Ary.
-------------------------------------- ***Do not, I repeat Do NOT feed the Trolls! *** *** All Hail the mighty hamsters! ***
As Donnadonna says, if you decide to get a mortage and she is part of that - definitely, definitely, see a solicitor about that 'tenants in common' thing so they can't make you sell the house to fund nursing home fees.
Don't have anything to add, except that I hope you can sort something out. My parents are in long term rented, and I often wonder what would happen if something like this happened . Unfortunately, I don't have any siblings to spread the load , and we are mortgaged to the hilt ourselves...just have to hope nothing happens til I make my millions!
Mum's now on about buying herself. Apparently the two of them clear 50k a year all wages and pensions included. And they will be on good NHS pensions when they stop working or something. There's a little 2 bed that sounds quite substantial for what it look son the outside. there's decent size lounge, dining room and not a tiny tiny kitchen. That's for 129k but it has been on quite a while, and needs works of improvement. Mum has talked to a few people and apparently you can get a mortgage up to 85 years old now not just 65. The mind boggles. And re; having to sell to fund a nursing home etc. She's my mum - it's me, the non-money grabbing HC! If it can be sold and any profit used to make her comfy and well-fed, that's good isn't it?! She's never bailed me out personally but the rest of them have had quite large handouts for things ( they'll have me if they ever read this!!) so surely we owe her a little bit!
To be honest all this assured tenant "right to stay in the property" doesn't bode well with me. It's not her house, she's no "right" to remain there any longer than the landlord/s family see fit as it is their house. They've been perfectly reasonable with the length of notice I think.
Obviously these laws were intended to protect people etc. but this is why I'd never be a landlord. You should be able to turf people out of your property if you see fit, whether they've damaged the place or not.
The problem we face now is where Mum is going to live. We've established she's not staying at this current place whether she can argue a "right" to or not. She has been advised to ask for 5k to cover the kitchen and 5k for the beautiful garden they spent years/£££ on.
The house I mentioned earlier has had the garden slashed in half by developers behind it so she's not too keen on that now, otherwise would've been perfect. The other 150k one has a bathroom downstairs
... sorry had to pause to see to my little boy with tummy bug ...
yes, bathroom downstairs and there was another negative I can't remember. That's it in the village aside from the bungalow I moved from! But that's up at 180k which is pushing it I think. I think Mum's going to have to compromise somewhere, possibly location. I feel like Kirsty and Phil!
To be honest all this assured tenant "right to stay in the property" doesn't bode well with me. It's not her house, she's no "right" to remain there any longer than the landlord/s family see fit as it is their house. They've been perfectly reasonable with the length of notice I think.
How refreshing your attitude is HC . I feel the same way - but thats easy for me, its not my mum so I can look at it objectively. Tennants have to be protected of course , but not beyond a landlord being reasonable with them.Does she anticipate any problem getting c10k for her input into kitchen/garden?
I can't see them handing over 10k personally. But she says she will strip everything that refers to this 10k out and take it with her. I've been rightmoving a bit further afield but that'll take a bit of convincing.
My old bungalow is looking the most promising if she can sort a mortgage. Let me know what anyone thinks of an offer for it bearing the following in mind... It went up for 189k, now 179k. Two bed bungalow, v. small kitchen and bathroom, no dining area. No central heating. Large back garden but after we ripped everything out it's a bit rough and empty!. Field views to front. The bungalow next door sold end 06 for 152k. This is same house but with a conservatory/extension for dining. In fact this bungalow is the only one of the four that has not been extended. And the one that sold was a lot better decorated, fantastic landscaped garden and summer house and porch. And all the front done with new gravel etc. A detached bungalow down the road sold for 150k recently - end 07. Possibly needing works of improvement - as it was knocked flat the other month and a hooooge detached is being built in it's place. We know aswell that the landlord isn't as clue up with his financed as others. We had a repossession hearing letter come through and he was permanently behind in mortgage arrears. He's a wheeler dealer type and we think he would jump at the right offer to get rid off it. He hasn't declared he's renting the house, I know that as he told them I was his sister who lived with him when they came to value the house - we think for one of many remortgages. The house has been up since just after we moved out so May 07 ish. Any thoughts?
Sounds like £150K to me then ... though you may have problems if he has remortgaged to over that value - he will likely "insist" on covering the debt, even if that means actually not shifting it (given he's nearly 12 months down the line!)
Just don't let anyone get the idea she's "desperate"...she's got loads of time!
) and me and Mr. have the good credit rating. The other two we'll just gloss over for now - but both are living with people with very rich parents if that helps!
All Hail the mighty hamsters! 
. Unfortunately, I don't have any siblings to spread the load 
, and we are mortgaged to the hilt ourselves...just have to hope nothing happens til I make my millions! 
little boy with tummy bug ...
... though you may have problems if he has remortgaged to over that value - he will likely "insist" on covering the debt, even if that means actually not shifting it 
(given he's nearly 12 months down the line!) 