What are ‘Let to Live’ mortgages?

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Mortgage expert Kaser Ayub, writing on the website Mortgage Strategy in December 2016, has proposed what he calls the ‘Let to Live’ mortgage

Many elderly people live alone in large houses that can be worth a large amount of money, but they may have little retirement income to live on. Let to Live is a concept that could provide much needed cash for elderly people while enabling them to remain in their home.

There are several ways that cash tied up in a house can be released. Selling a large house and moving to a smaller one is one solution, but many old people are reluctant to move from their family home. For those looking at other ideas, a remortgage can be taken out or equity in the house can be used to provide an income.

A Let to Live mortgage provides finance so that the house can be purchased and converted into several apartments. The original owner is then allowed to live rent-free in one of the apartments and also receives a cash sum that can be used to generate income, or left to their family when they die. This arrangement provides both income and accommodation for the elderly, as well as providing extra rented property to satisfy the high demand for rented accommodation.

Although Let to Live mortgages are just an idea, buy-to-let landlords could purchase large properties with a commercial mortgage and agree to allow the original owner to remain in the property on a rent-free or low-rent basis.

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