With property prices so high it is difficult for first-time home buyers to enter the property market. Parents are often called on to help out with the deposit.
If the first home buyers are a young couple Mum and Dad are naturally concerned with the possiblity that if the relationship fails the equity in the property, including that represented by the parents’ contribution will go partly or wholly to their child’s former partner.
To avoid this problem Bransgroves Lawyers recommend the contribution be loaned by the parents to the young couple and the loan be protected by a mortgage. The advantage of this arrangement is that if the property has to be sold and the proceeds split the parents will get their contribution back before their child’s former partner gets anything.