It can be hard for younger people to get onto the property ladder these days, but assistance from parents or grandparents could help them take that first step.
The housing market has changed considerably since the older generations were starting out on their property-owning journeys, and it can be tough these days for young people to begin climbing the property ladder. Saving the large deposits can be difficult or even impossible for some, which is why many parents and grandparents are stepping in to help.
While it may be tempting to simply hand over the sum required – either as a gift or a loan – it pays to take expert advice in order to avoid unexpected tax liabilities or other problems. We’ll help you consider all the available options, from gifting and making loans to providing security on a mortgage, many of which are useful when it comes to planning your estate. We’ll guide you through the potential tax pitfalls too, making sure your decision is well informed.
Please be aware that the home on which the mortgage is secured could be repossessed if the necessary payments aren’t kept up to date.
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.
We recommend that if you provide security on a mortgage as a guarantor that you receive legal advice to ensure you fully understand your obligations regarding the mortgage.