"My family are helping us - what do they need to know?"

It is increasingly common to see parents and grandparents helping their offspring get a foothold on the property ladder.  this is often known as “the bank of mum and dad”.  

If you are thinking of giving your child or grandchild a deposit for their new home, taking out a joint mortgage, or are planning to help them financially with any renovations or mortgage repayments, it is essential that you understand the various options for how this can be achieved in practice and what potential risks and the various tax implications there may be for you with each option. 



  • Is it a gift or a loan?
  • If it is a loan, when and how do you expect to be repaid?
  • Do you expect to own a share of the property and, if so, on what terms?
  • Are you providing the money only to your child or to his/her partner too?
  • What would you expect to happen to the money or your share of the property if your children were to split from their partner?
  • What would you wish to happen if one of them dies?

Once you have decided how you are going to provide the money, you will need to ensure that this is agreed with your child and properly recorded, to avoid unexpected issues arising further down the line.

Expert legal advice

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