Bank of Mum & Dad funds 1 in 6 first-time buyers
According to a new report from Post Office Money some 16%, or nearly one in six first time buyers, are funding their home with a parental loan. The majority of parents however, some 87%, do not formalise an agreement with their house buying children. By failing to provide a deed of gift or letter of intent they could be putting themselves at risk legally.
With no formal arrangements in place, both parents and buyers are left legally vulnerable and could even be pursued for additional costs such as stamp duty.
The Money Charity has worked with Post Office to create a new guide to help parents and adult children navigate what may be a pretty heavy, but very important conversation. Spokesperson Stephanie Hayter said, ‘This new aspect of your relationship with each other will impact your family dynamics as well as your finances, so it’s important you get this conversation right and make sure everything is carefully thought through. Then you can feel confident and enjoy the journey together.’
Full story available from PropertyWire: https://www.propertywire.com/news/uk/research-reveals-just-much-financial-support-first-time-buyers-get-parents/