News
Law Society warns parents over house deposits gifts
- 11th December 2009
Generous parents who are gifting thousands of pounds to children for house deposits should take legal advice, warns the Law Society. As the end of the stamp duty holiday approaches on 1 January, many students and trainee lawyers are getting onto the housing ladder now before the stamp duty charge becomes effective again.
But parents are being warned to take legal advice to protect their interests because the size of the gifts of house deposits are running into thousands of pounds and can be as much as £50,000 with mortgage companies lending far lower than 100% of house prices.
Eight out of 10 first-time buyers in London are reportedly being forced to ask parents to help finance their deposits.
The President of the Law Society, Robert Heslett, says: “It is very important that all parties involved are comfortable with the arrangement and that everyone knows where they stand with regards to paying back the money. This would be the ultimate Christmas present for many, but it could also tear families apart if things went wrong.” He says handing over a large amount of money with no legal structure in place is a minefield.
-
