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Student Homeowners

Posted by Javeria Tahir

10-09-2019

September, predominantly known as the start of the new academic year, with most universities welcoming both first time and returning students, is often the most challenging time for parents to find affordable and high-quality university accommodation. Lenders are now looking at students for early mortgages, turning them into landlords and student homeowners with the help of their immediate families. A student can buy a house and rent the spare rooms in the house to friends or fellow students with the rental income covering the mortgage payments. In return allowing young people to avoid expensive and often poor-quality accommodation by enjoying the security of owning their home and making a profit while studying.

To obtain a ‘buy-for-uni’ mortgage, the student’s immediate family members must provide security in the form of either cash or equity in a property. The lender will be protected in the event there is an outstanding debt over the property as a result of the property being repossessed or sold for less, any shortfall will be recovered from the immediate family member. The mortgage term converts into a traditional mortgage without parental security after the student graduates.

Range of alternative ownership options:

It is essential to weigh up the options carefully and to seek tax advice for any future tax implications.


Javeria Tahir

Trainee Solicitor
Residential Property

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