Minimum age for buy-to-let

[kashn]

I'm thinking of buying my next property purchase in the name of my son who is 14 years old.
So it is technically possible for him to own the house and any income be tax free?
Would it be possible for him to get a buy-to-let mortgage and if so, how much loan to value are we looking at and would i need to be guarantor?
Thanking you in advance for replies from the knowledgeable PH crowd

[jonah35]

kashn said:

I'm thinking of buying my next property purchase in the name of my son who is 14 years old.
So it is technically possible for him to own the house and any income be tax free?
Would it be possible for him to get a buy-to-let mortgage and if so, how much loan to value are we looking at and would i need to be guarantor?
Thanking you in advance for replies from the knowledgeable PH crowd

obviously not mate!

he can't borrow money he's not old enough

[1]

kashn said:

I'm thinking of buying my next property purchase in the name of my son who is 14 years old.
So it is technically possible for him to own the house and any income be tax free?
Would it be possible for him to get a buy-to-let mortgage and if so, how much loan to value are we looking at and would i need to be guarantor?
Thanking you in advance for replies from the knowledgeable PH crowd

Are you honestly asking if you 14 yr old son can get a mortgage?!

[scotal]

Your son will need to be 18 for any type of mortgage. However a fair number of BTL lenders will not lend to first time buyers, some won't even lend to people who aren't current owner occupiers.
Its a non-starter.

[kashn]

I am asking that ! as I have never been asked about my income as regards a btl mortgage as long as the ltv is less than 75% and rent covers 125% of the interest payment.
Some of these btl are not that expensive so I can afford to buy outright but I can still register the property under his name?

[98elise]

kashn said:

I am asking that ! as I have never been asked about my income as regards a btl mortgage as long as the ltv is less than 75% and rent covers 125% of the interest payment.
Some of these btl are not that expensive so I can afford to buy outright but I can still register the property under his name?

Its quite normal for income to be ignored on a BTL, as the lender will be looking at it on its own merits.

It's not normal for a 14yo boy to be buying a house though, so I doubt they will lend to him

[scotal]

98elise said:

Its quite normal for income to be ignored on a BTL, as the lender will be looking at it on its own merits.

Ignored is putting it a bit strongly. There are plenty of lenders who have income minimums on their BTL products, however you are correct that the lender will still want the house to stack up on its own numbers. There are a few lenders who take no interest in seeing evidence of income, but its more usual these days to have to back it up.

[98elise]

scotal said:

98elise said:

Its quite normal for income to be ignored on a BTL, as the lender will be looking at it on its own merits.

Ignored is putting it a bit strongly. There are plenty of lenders who have income minimums on their BTL products, however you are correct that the lender will still want the house to stack up on its own numbers. There are a few lenders who take no interest in seeing evidence of income, but its more usual these days to have to back it up.

Yes badly worded on my part, your description is better

[Mr POD]

Form a LTD company to run said BTL and give him a 49% shareholding in trust ?

[scotal]

Mr POD said:

Form a LTD company to run said BTL and give him a 49% shareholding in trust ?

Which will massively limit your borrowing options.
ETA Having it int a LTD co will limit the borrowing. A Ltd co with a 14 y/o shareholder, I have no idea how the lenders would react to that.

Edited by scotal on Thursday 2nd June 11:25

[Mr POD]

scotal said:

Mr POD said:

Form a LTD company to run said BTL and give him a 49% shareholding in trust ?

Which will massively limit your borrowing options.
ETA Having it int a LTD co will limit the borrowing.

Edited by scotal on Thursday 2nd June 11:25

Why is this ? I know it's true, but I have a deposit sitting in my ltd company, I've paid corporation tax on it, but If I pay it to myself as dividend and then use it as a deposit on a buy to let, bad things will happen. When I say bad, I mean It will cost me more than the 10% tax I'd have to pay. Alot more.

Apparently if I had a track record, and a portfolio of properties then not such an issue, but I don't.

[scotal]

Mr POD said:

Why is this ? I know it's true, but I have a deposit sitting in my ltd company, I've paid corporation tax on it, but If I pay it to myself as dividend and then use it as a deposit on a buy to let, bad things will happen. When I say bad, I mean It will cost me more than the 10% tax I'd have to pay. Alot more.

Apparently if I had a track record, and a portfolio of properties then not such an issue, but I don't.

Not all lenders want to lend to Ltd co for BTL. It makes life more difficult for them. I guess its largelyto do with repossessions, and liability.
You'd also better be sure that your company can hold the sort of property you want. Not all can.

[cpas]

kashn said:

I'm thinking of buying my next property purchase in the name of my son who is 14 years old.
So it is technically possible for him to own the house and any income be tax free?
Would it be possible for him to get a buy-to-let mortgage and if so, how much loan to value are we looking at and would i need to be guarantor?
Thanking you in advance for replies from the knowledgeable PH crowd

Seems like a reasonable question to me and would give him a good leg-up on the property ladder, but sadly as has been said most lenders would probably bee too nervous about such a venture. If you were buying the house outright it could be seen as a tax fiddle. If you were to pay for it and put it into his name this would be considered as a gift, and if you were to get him to 'pay' for it with monthly mortgage payments which were in fact coming from you, then this could still be dodgy - especially if you wanted the money out of it for yourself in a few years.

[Toro Rosso]

A minor cannot own property without the creation of a trust (ie they don't actually own it, they have a right to the capital) so the question of mortgage availability in your son's name is not relevant - even if the answer would be that no one would lend the money.