Helping your kids onto the property ladder - top tips

By The Newsroom
Published 26th Oct 2010, 23:35 BST
Updated 29th Oct 2010, 22:18 BST
1. Don't compromise your own financial position. In the same way that banks have to lend responsibly, parents should help responsibly.

2. Decide whether you want to buy the house, contribute to the deposit from your savings or release equity within your own property, or act as a guarantor.

3. Speak to a tax expert about inheritance tax (IHT) and capital gains tax implications. Making your support a gift can have significant IHT benefits.

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4. Check what you're buying. Use your experience of home ownership to help your offspring find a suitable home.

5. You may have helped buy the house but it is their home and it is their space. You will have less say than a landlord is used to having.

6. Decide if you benefit from any increase in the value of the property or just get back what you put in.

7. Agree on when the support ends. For example, is the money paid back when your child makes the next move on the property ladder?

8. Talk to each other openly and honestly so that expectations and commitments are crystal clear.

9. Get everything in writing. Yes, they are family, but having a registered agreement is a good idea.

10. If your child is buying with a partner, make sure that the financial split is agreed should young love turn into mutual hatred. Avoid part of your financial contribution walking off with the ex.

SOURCE: ESPC