Legal Q&A: could we get a buy-to-let mortgage in order to buy my father-in-law somewhere to live?

Question: My father-in-law has asked my wife and I if we and her younger brother could buy him a flat in London to live in.

He is 75 and his only income is his small pension. He has no assets or savings and could not pay rent. We have a large mortgage on our home and my brother-in-law has a sizeable mortgage on his flat, so we couldn't borrow more that way.

We all work, though, so could we get a buy-to-let mortgage in order to buy my father-in-law somewhere to live? My wife and I have savings of about £25,000.

Answer: Buy-to-let mortgages are specifically designed for people who want to rent out investment property on a commercial/business basis.

Most lenders have different lending criteria for residential mortgages — where the borrower occupies the mortgaged property as their home — and for buy-to-let mortgages. For example, in the case of a buy-to-let mortgage, expected rental income will be taken into account.

Buy-to-let mortgages often include conditions specifying the type of tenants who can occupy the property and the type of tenancy to be used. It is common for such a mortgage to prohibit the borrower from letting the property to family, so a buy-to-let mortgage may not help you.

However, you and your wife and her brother may be able to apply for a regulated buy-to-let mortgage. These are aimed at non-professional landlords, which you would be as you intend to rent to close family. All three of you would have to satisfy the strict affordability criteria that would apply to such a mortgage.

These answers can only be a very brief commentary on the issues raised and should not be relied on as legal advice. No liability is accepted for such reliance. If you have similar issues, you should obtain advice from a solicitor.

If you have a question for Fiona McNulty, email legalsolutions@standard.co.uk or write to Legal Solutions, Homes & Property, Evening Standard, 2 Derry Street, W8 5EE. Questions cannot be answered individually, but we will try to feature them here.

Fiona McNulty is a solicitor specialising in residential property.