Fully agree with above response!Highly unlikely I would think. Even if you could remortgage one of the rentals to buy new home to live in that wouldn't give you a tax advantage as the purpose of the funds would not be for the rental property.
If and it's a big if they managed to get one they would not be obliged to take out mortgage protection but banks can make their own policy on this and may not do a mortgage without some cover, have they any existing cover they could assign? Taking out cover at this age is likely to be prohibitively expensive.
Is there anyone younger with an income than could go on a mortgage jointly with them? That might be your only hope.
With two properties mortgage free would a widowed person aged 70+ on the state pension + Private pension + income from 2 rentals get even a 5 yr mortgage to move to a smaller house?
It's hard to imagine there is emotional equity in all of the houses. Maybe somebody has got a wrongheaded ideas about "shrinking the estate"?Why don't they just sell their existing home and buy a smaller house?
I must be missing something here. Why do they need a mortgage to move to a smaller house? Why don't they just sell their existing home and buy a smaller house?
If they are aged 70+, they probably have a large capital gain on their family home. This could cause them a problem if they rent it out for a few years and then sell it.
It's so much cleaner to sell the home. It's probably not appropriate for a 70 year old to have the hassle of being a landlord.
Brendan
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