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wingrovebuyer, Senior Solicitor
Category: Property Law
Satisfied Customers: 737
Experience:  Bachelor of Laws (Honours); PG Diploma in Law; Member of ALA; 9 years' experience
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My sister and I jointly own a house in London. The property

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My sister and I jointly own a house in London.
The property was bought in 2002 and is worth about £500k
Our mother lives in the house, the primary reason for buying the house is to have a home near to my sister and her family.
There is no mortgage on the house.
We applied for a 'buy to let' mortgage for £125k to release some equity and carry out some improvements to the property.
We were told that we cannot get a buy to let mortgage on the property as a family memeber is resident.
This is baffling us, is this correct and is there any way round this?
wingrovebuyer :

Hello. Much depends on the particular lender's own rules, but generally they want to know that the arrangement is commercial and at arms length. It should be possible to find a BTL lender provided your mother is a tenant on a proper tenancy agreement, paying rent. If youccan't make such an arrangement then I am afraid that most BTL lenders won't lend.

wingrovebuyer and other Property Law Specialists are ready to help you
Customer: replied 3 years ago.

Many Thanks


We have a tenancy agreement and my mother is paying rent. could you suggest a BTL lender (without predjudice)?.


Best regards



Hi. We're not allowed to make professional recommendations, but I personally use Birmingham Midshires who are very flexible.
Customer: replied 3 years ago.

Hi Thanks again for your help previously.

My sister owns 25% of the property and I own 75%. there is no morgage.


My sister is considering increasing her percentage as a long term investment.


If she pays me for an increased percentage, should this be taxable (as I would have 'lost' part of my investment.)?