Helping Son and Daughter Buy Houses

nheather

Distinguished Member
Probably more imminent for my daughter than my son.

My son has finished university and has a good local job, he lives with us and doesn't have urges to do his own thing - he has Aspergers so I 'm not inclined to push anything.

My daughter by comparison, finishes University this summer, has already secured a great job which is reasonably close by but outside comfortable commuting range so she will be moving out. She is not currently in a relationship so will be doing her own thing. She intends to rent but I'd like to see her get on the housing ladder. Unfortunately, being on her own, and the geographic location (M4 corridor) means that getting being able to get a mortgage under her own steam is unlikely, even with a good job.

So things have been buzzing around my head about how to help and these three come to mind

1) Take out a mortgage with her - but I wouldn't live there
2) My son takes out a mortgage with her - but he wouldn't live there
3) I have an offset mortgage that is paid off bar a token which we maintain to keep it open. We can draw down on that to get around £100k to pay as a deposit.

What I'm not sure is the legality and tax position of these ideas. Anyone done similar and can advise?

Cheers,

Nigel
 

leedebs

Well-known Member
Sorry cannot help on the other options you have presented but we did help our daughter a couple of years ago onto the property ladder as per your option 3. We were surprised that she could even obtain a mortgage but after she spoke to an advisor between us we worked out that if we covered the deposit this enabled her to cover the mortgage payments for the rest. I think we signed something to say we had no vested interest in the property or similar (I will speak to my wife as she has the legal mind & sorted it all) She has now met someone & they are looking to get a bigger property together.:)
 

Sloppy Bob

Distinguished Member
She intends to rent but I'd like to see her get on the housing ladder.

Might be an idea to rent to start off with, to see if she likes the job (and the job likes her), she's happy with the location etc.

Buying a property to sell it a year or two later as she's moving job, doesn't like the area and would rather be closer to home and commute a bit further or any other number of reasons could be a mistake.

Buying your first property, it's a big decision and she should take the time to do it right rather than rush into it right now.

Just an opinion. You may not agree.
 

nheather

Distinguished Member
Might be an idea to rent to start off with, to see if she likes the job (and the job likes her), she's happy with the location etc.

Just bouncing ideas around at the moment. She will definitely rent first which will commit her to a year and get to know the area and surrounding areas better.

Cheers,

Nigel
 

Stevie G

Active Member
You should also be aware that if you already have a property there's a high chance that if you are in any way part owner of your daughter's new house you would probably be liable for the additional stamp duty that was brought in a few years ago, something like 3% of the whole purchase price on top of normal stamp duty (which on the amount you're looking at will be zero).

A friend of ours was moving a few years ago, just before it was brought in and was named on his parents' house and they had to rush completion through before it came into effect in that April.

We ha a similar problem when we were buying in 2017. My wife had been added to my sister-in-laws mortgage with 1% ownership (she'd had a relationship end and the bank wouldn't allow her to keep the mortgage on her income alone) and we had to get my wife removed from it before we ould buy otherwise we'd have had to pay another 3% stamp when we bought out (only and main) home).
.

I don't know about any ways around it, but make sure you get good advice on this.
 

Iain42

Well-known Member
I'm pretty sure I have seen adverts for "family mortgages", aimed at just this type of situation. I think it may have been Barclays. This may seem very obvious, but talk to your IFA, as he or she should know the best ways to deal with this.
 

IronGiant

Moderator
It was Barclays (the adverts).
 

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