The bank of mum and dad
Guy Rendell, Associate in the Private Client Department, and Graeme Fraser, Partner in the Family Department at Hunters discuss the ‘lowdown’ on parents helping children to buy property.
With stagnant wages and high property prices, the so-called ‘Bank of Mum and Dad’ has become a major player in UK property transactions. As a result, advice is increasingly sought as to how such purchases should be structured from a tax and asset protection perspective.
According to data released by Legal & General in 2016, 25% of all homeowners received help from family and friends to buy the property they live in, a figure which increases to 32% for London homeowners and 57% for the under-35s.
This article examines the array of options for parents to assist their children, including: buying a second property in the parents’ names; purchasing it jointly with their child; giving their child the funds to purchase the property; lending he funds to the child to purchase the property; and using a trust to purchase the property.
Read the full article in the Trusts and Estates Law & Tax Journal, via a PDF, here.
James Vernor-Miles and Andrew Parry, Partners at Hunters, also provided considerable input in this article.