Private Landlord (NLC)

[Doc883]

My Mum is currently in private rented accomodation in Edinburgh and receives Housing Benefit and Pension Credit. I am toying with the idea of investing in a Buy-to-Let property in Edinburgh. Does anyone know if there are any rules or regulations that would prevent me from becoming my Mum's landlord ? That way I could ensure she is in the right flat in the right area with full control of her rental payments. In one respect it doesn't sound legal but currently anybody on this Forum for example could be her Landlord so why not me

[gedi]

I've done a similar thing except my mother in law also has equity in the property I bought which complicates things a bit more.
In your situation you have to make sure that you do charge a proper market rent otherwise her benefits would be affected (if they were to find out).

I arranged it properly with advise from my accountant to ensure that there are no possible nasty surprises in the future. Hopefully someone else with a better knowledge of the rules can guide you further.

[Corranga]

Some (most?) mortgages have a clause against letting to relatives and ask you to sign a declaration that you are not doing so.

To keep it all above board, you'd obviously have to find one that is designed for letting to relatives.

[BigD]

Some (most?) mortgages have a clause against letting to relatives and ask you to sign a declaration that you are not doing so.

To keep it all above board, you'd obviously have to find one that is designed for letting to relatives.

Yes they become Regulated Mortgages when there are relatives staying there and most lenders do not want to do Regulated Buy to Lets. (They are normally unregulated and so less onerous). Although if you are buying outright then you have no issues with mortgages.

I know someone who did it for his mother and there were no issues. It was all above board and a fair market rent was charged and the local authority still paid the relevant rate in housing allowance (based on number of rooms required now, a flat rate) and Pension Credit/Council tax benefit etc.

[Doc883]

Some (most?) mortgages have a clause against letting to relatives and ask you to sign a declaration that you are not doing so.
To keep it all above board, you'd obviously have to find one that is designed for letting to relatives.

Yes they become Regulated Mortgages when there are relatives staying there and most lenders do not want to do Regulated Buy to Lets. (They are normally unregulated and so less onerous). Although if you are buying outright then you have no issues with mortgages.

Outright purchase is the plan so no Mortgage issues