The difficulties facing younger people in joining the ranks of homeownership are well-reported, with renting often now stretching well into one’s thirties or beyond. Consequently, an increasing number of parents and grandparents are stepping in to help children onto the housing ladder.
There are a number of ways to do this; gifting, loans and providing security to mortgage providers are all worth consideration, and many of these solutions have the dual-advantage of helping with effective estate planning. However, caution - and advice - needs to be taken when considering which option to take to ensure that no unexpected tax liabilities result from this act of generosity.
The home on which the mortgage is secured may be repossessed if payments are not 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.
If you would like to speak to us about a particular issue or wish to find out more about the services we offer, please get in touch.