Lending or gifting is a major financial commitment – Credi can help you!

lending or gifting

Lending or gifting are some of the most common ways of parents helping their children buy their first property. YourMoney highlights a number of alternative options for UK parents to help their children buy a home and highlights the key risks involved.

There are many ways for parents to financially help their children afford their first property. The most common way for parents to help their children is lending or gifting them money. Formalising and documenting the agreement is often where issues arise. With SaaS software such as Credi, an informal loan between family and friends can be formalised, documented and managed all in one place. In turn, protecting relationships and avoiding arguments.

Author Patrick Fitzpatrick, mentions Royal London’s guide, that highlights other ways that parents can help their children buy a home. Including acting as a guarantor, taking out a joint mortgage, taking out a second mortgage or even equity release.

Another key aspect that Royal London suggests parents always take into account is the potential tax risks involved. Such as, when parents are named in their child’s deed for the property, making them liable for an additional 3% stamp duty on a second home.

Read more by clicking the link below

Credit: John Fitzsimons

Source: www.yourmoney.com/

 

 

NOTE: The views and opinions expressed here are mine and do not necessarily represent or reflect the views of Credi Pty Ltd.

Credi Pty Ltd (Credi) is not a bank, provider of legal advice or a financial lender.

Credi only provides a platform that allows friends, family and third parties to originate, negotiate and conclude loan agreements amongst themselves.

Credi does not provide legal advice, monitor or assess, agree, approve or decline any loan requests nor does the platform perform any funds transfer services.

Credi is not a law firm or legal practise, is not engaged in a legal practise and Credi does not act as lawyers or provide a legal service.

Nothing on this site should be considered is legal advice and you should consult a lawyer in your area to get specific legal advice and certainty of your legal rights and obligations.

The use of the Credi platform is governed by Credi’s Terms of Use.

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