How family can help with a property purchase
- Credit: Mr Mortgages
Everyone has heard of the traditional ways that a family may help a loved one buy a property, gifting money towards the deposit, help with the stamp duty costs and solicitors fees - even some parents who choose the house and do everything for the children to finally get them out of the family home!
Some lenders have also come up with ingenious new schemes to enable people to help their family to buy a property.
Recently, Mr Mortgages helped Rico buy a new property for himself and his family.
To buy the property he wanted, Rico’s dad, Adam, agreed to go onto the mortgage even though he was not going to live in the property.
Experienced adviser Chris sourced a 'joint borrower, sole proprietor' mortgage with the Skipton Building Society which enabled Rico and Adam to be on the mortgage, but only Rico needed to be on the deeds, which prevented any additional stamp duty costs.
The mortgage suited both parties, Rico could get the house he wanted and Adam could help his son without incurring additional stamp duty for second properties.
Rico’s income is expected to go up dramatically in the future as he is currently doing his skipper’s licence.
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So at some point in the future, Adam should be able to come off the mortgage.
Adam has also now bought a new house for himself, also helped by Mr Mortgages.
Rico was so happy when he completed on his purchase, he bought a moderately priced bottle of champagne to celebrate - he was not best pleased when Adam sprayed it all over the new house!