You may have benefited from the increase in the value of any property you own, but that is a benefit you might not be ready to realise yet in order to help the next generation. Plus you have your retirement to finance and you may also have the added burden of subsidising (or at least managing) the finances of your own parents.
If you are helping a family member buy their first home or if you are the family member who is being helped, it is wise to consider which route would be best for all concerned.
Ultimately, by organising and structuring all aspects of a BOMAD property purchase correctly everyone stands to benefit, not only practically but also emotionally, by knowing that risks are mitigated and the legal ramifications of the agreement have been addressed, so you all know where you stand.
Loan, gift, guarantor mortgage or joint purchase?
A loan for a deposit is one option which makes practical sense for some families, alternatively a gifted deposit may be affordable (or a mixture of both loan and gift) or perhaps a joint purchase could be the best way forward. Other options do exist to reduce the cost of a mortgage, for example acting as a guarantor against the value of a home or savings is one way to provide assistance, plus there are certain Government sponsored schemes such as Help to Buy and Shared Ownership which could ease the burden.
The right choice for you will depend on a number of things including, of course, the money or assets available, but also the degree to which you wish to be involved beyond the initial purchase transaction.
Each option brings certain advantages, but each is also likely to require legal advice to ensure you get the best result. The Wellers team of property, private client and family solicitors is able to help you, whichever direction you choose to go in.
Contact Wellers today
It’s a surprisingly common occurrence – parents assume they are lending a deposit to their child, but their child believes it is a gift. This can have many negative consequences.
Whether you are a first-time buyer, a parent or both parties coming together to seek experienced and reliable legal advice – including information on all the tax implications of a BOMAD property purchase – our solicitors can help you make clear and sensible decisions.
Wellers Law Group has offices in London and the South and can help you establish clarity regarding your options when it comes to Bank of Mum and Dad gifts or loans, and guarantor mortgage property purchases.
Contact us today for authoritative and decisive legal advice or fill out our enquiry form and we will get back to you.