HI, I wonder if anyone could offer some advice please? We have a family property belonging to my grandparents in East Sussex - Bognor Regis to be exact. My grandparents have both moved into a nursing home and the property is now effectively vacant. It does need a fair bit of renovation work doing - bathroom, kitchen, floors, etc. At present there is no mortgage against it. I recommended the following strategy to my father: - Take a mortgage against the property - Use some of the money e.g. £10,000 to renovate the house - Get a revaluation and take a BTL mortgage at the new valuation recouping cost of renovation as part of this - Put the house out to rent However, my grandparents are in their 80s and have no income. So I have 2 initial quesions: 1) Can a mortgage be taken against the property at any level of leverage if it is still in their name? If so, which providor offers this? 2) Would it be better to transfer the property to my father's name and then try to follow this strategy? Any advice would be greatfully received and if there are any landlords in this area (its not our local area - we live in London) that would be good to talk to them as well. Best regards Andy

I'd be keen to see other replies on the possibility of finance as you get older. Other than that issue, you can get a relatively small BTL mortgage now as the house will be inhabitable in its current state. After renovations the potential rent will increase and so the BTL mortgage can be greatly increased then. This will be much cheaper than arranging 2 loans, but you will probably need to wait 6 months from the original loan to the release of increased funds. On who should own the property .... if your grandparents' estate will need to pay substantial inheritance tax it might be worth transfering the property now to your dad, and hoping they survive 7 years. However, this probably won't wash as the rent income will be used to pay care home fees. The property might remain their 'principal residence', but even if not the Capital gains tax arrangements make it better for them to hold on. The problem is income tax, however you say they have little other income. How does the potential rent income compare with their combined income tax thresholds? Remember that the funds released by the loan will generate income which will also be taxed. I would guess that their Wills need looking at again, will it be best to transfer half the house to your dad when one of them dies? All this can get very complex, there are 3 kinds of tax and perhaps also a local authority expecting help with care costs. Your dad should get specialist advice, but remember the specialist may not be a property expert as well. hope this helps

Thanks Ed - it is indeed a complex issue and one that affects more and more people as the population ages. Your comments have given me food for thought.

look at the retirement plus website.they will release money on the property.they are easy to talk with and can offer options.

Hi,I should add that at present we are paying 100% for my grandparents staying in the residential home, so there is no issue with council interference. FYI - we have identified a BTL loan at 75% LTV, it appears to be the only one on the market given both my grandparents are in their 80's and my father has enduring POA. If anyone knows of any BTL mortgages offering 80-85% given these terms and conditions, that would be great!ThanksAndy