Buying a house for parents to live in



New Member

I'm looking for some advice in relation to a pretty specific question. Any help would be greatly appreciated!

I rent a home in London. My parents rent a home outside of London. Neither of us own a home today. I would like to buy a family home approximately 1 hour outside of London, which my parents would live in. I would continue to live in the flat that I rent in London during the week, visiting parents at weekends. I would fund the deposit on the house and pay the mortgage. My parents would pay me below market rent.

Given the level of rent and the fact I'm a first time buyer, I assume a BTL mortgage is off the table (or would be too expensive).
1. Would it be possible to get a residential mortgage and register the new property as my primary residence?
2. How might continuing to rent a property in London impact my borrowing power? What if I were to buy the property and then later decide to also rent a flat in London?
3. Would I need to pay rental income tax on the money I receive from my parents? I "feel" like this shouldn't be the case. Perhaps they could co-own the home with me?
4. Is there anything else I'm missing / should be asking?

Many thanks!


Interesting point about a rented property - surely this cannot be a primary residency for tax purposes if you dont own it? If so then surely the property you are buying would be your primary residency for tax purposes? Although you may need to live there for 3 years to tax advantage of primary residency tax breaks?

I would be interested to hear anyone else's take on this situaiton - interesting.


As you dont own the property you rent, are you allowed to allocate the only property you own (even if you parents live there) as your primary residence? I would be interested to hear more on this legal situation.