It is no surprise, given today’s housing market that many young people are so stuck in their financial situations that they turn to their family to help them get on the property ladder.
These days, with all the pressures of modern living, parents and grandparents are increasingly being called on to step in to help younger family members buy their first home. In 2017 it was predicted that parents would be involved in 25% of all UK property transactions with average lending rising from £17,000 in 2016 to £21,600 in 2017 and this figure expected to rise again for 2018.
As we’ve seen from research, the bank of Mum and Dad is very generous, but what happens if things go wrong? What if your child and their spouse divorce or they are declared bankrupt? What if there is a family feud?
Prevention is better than cure and simple solutions are available to deal with these problems such as a declaration of trust. We can advise you on all aspects of lending money to help children get on the property ladder.
Article of interest – Here’s a link to an article in a recent published in the Daily Mail highlighting why you shouldn’t transfer property to children without taking very detailed advice.
If you are about to enter into a similar arrangement, then speaking to Bromleys can help
Contact Laura Stansfield, Sue Darlington or Susanne Furness in their Wills, Probate & Planning for the Future department to discuss how one of our team of experts can help guide you through this process.
Email: firstname.lastname@example.org; email@example.com firstname.lastname@example.org
Tel: 0161 330 6821