It is no surprise that some potential new homeowners are going to have issues getting onto the property ladder. In the UK, we are currently paying a national average in excess of £240,000 per home, and this number is steadily increasing with each passing year. For this reason, it is important to keep some points in mind while helping your children climb onto the property ladder.
Why Is It So Hard For Your Child To Get Onto The Property Ladder?
It tends to be the case that some first-time buyers need financial help from their parents due to theincreasing level of property prices. Back when you were a child, houses were likely to be a lot less expensive, so you never needed to worry about owning one when you were older. But now, the fear of being unable to own your own home as an adult is a very real experience.
How Can I Support My Child To Get On The Property Ladder?
Getting your child onto the housing ladder can seem overwhelming, but luckily, there are several things you can do to help them, such as:
– Lending them money or gifting them an early inheritance to put aside for a home.
– Encouraging your child to save money earlier in life. You can also begin by teaching them about banking and investments. A little bit of savings put aside frequently can accumulate into a lot over time.
– Acting as the guarantor for your child’s mortgage and agreeing to pay if they cannot.
– Put aside money for your child in a bond or bank account so that you can use this to help them when they need extra funds to buy their house.
– Speak to an expert, such as an Independent Financial Advisor, for more advice and guidance.
If you decide to give your child a gifted deposit, we recommend you protect everyone’s interests with a declaration of trust. A declaration of trust records the financial interests in the property and is especially important if your child is living with someone else but they are not married or in a civil partnership.
If you want further advice on how to support your child with buying a home and you’re looking forconveyancing solicitors near you, talk to an expert licensed conveyancer here at Bowser’s Solicitors today.