Taking legal advice on the implications of gifting or loaning money to help a child buy a house can be an important step towards ensuring that the situation doesn’t unravel in the future.
Important BOMAD paperwork and documents
There are a number of important documents and a few rules that you need to be aware of:
- Cohabitation Agreement – An agreement between unmarried couples which sets out the future relationship, including financial matters such as who owns what and in what proportions
- Pre/Post Nuptial Agreement – Agreements between married partners that sets out what each party brings into the marriage from a financial point of view.
- Declaration of Trust – Also known as a Deed of Trust, it is a legally binding document that recognises the financial arrangements between property owners and other parties that may have an interest.
- PETs – These are gifts that are potentially exempt from tax provided that the person making the gift does not die within a specified period of time (seven years) so as to prevent the gifts from being a means of avoiding Inheritance Tax.
- Loan Agreement – As you might expect this is an agreement that sets out the terms of a loan.
Contact a Wellers property solicitor today
If you have any questions that relate to buying property for children, guarantor mortgages, loans between family members, or anything relating to the Bank of Mum and Dad, contact us for experienced and knowledgeable advice. Our multi-disciplined team of solicitors can help with the practical and legal aspects of family-enabled property purchases, gifted deposits and joint mortgages.
As well as helping you with all the necessary paperwork, we can also ensure that you are fully aware of all the tax implications of each possible route. Call Wellers today or fill out our enquiry form and we will get back to you.