The Lemon Fool

My wife and I are British expats and we are looking at options for property-buying in the UK. The intention is that my Mother-in-law will live in the property, while we will remain abroad.

I understand that even though the 'tenant' will be entirely reliable, as a family member, mortgage companies will most likely insist on a 25% deposit and a guaranteed minimum rent (125% of the mortgage payment, I believe). As a possible alternative, what might be the circumstances if the mother-in-law contributes to the purchase (she has a decent job and is financially stable)? If we pool salaries for a higher mortgage could we also get a residential mortgage because she will live in the property?

Thanks in advance.

You will find this essentially impossible (and not because you live abroad).

Summary of the reasons are given in this article:
https://www.theguardian.com/money/2017/sep/04/can-i-buy-house-for-mum-live-rent-free-close-relatives

Thanks for the reply, I appreciate your time.

I had seen that article, yes. It is a lot different to my situation however. The buy-to-let option is ideally my second option, I am really looking towards the residential option. My Mother-in-law has a job and a solid job history, she is only 52 and has years of work ahead of her. She would come in as an equal share owner of the property (split 3 ways with my wife and I) and that was why I thought a residential mortgage might be an option. Expat specialist mortgage brokers I have spoken with since posting this morning have suggested that it is possible, especially pooling 3 salaries but obviously paperwork would be quite complicated.

Thanks again.