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The Law Society has warned parents to take professional advice from a solicitor before providing their children with substantial deposits to help their children onto the property ladder. With deposits at around the 25% mark, more young consumers are forced to turn to the parental bank for financial assistance. It is important however that parents consider the legal aspects of making such large loans to ensure that their interests are protected.
Law Society President Robert Heslett says:
"If parents are helping their children, they should see a solicitor beforehand in order to draw up a loan agreement. 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. While it's unlikely your children will run off with your savings, handing over a large amount with no legal structure in place is a minefield."
Kate Hamilton in the property team in Exeter can advise you if you are planning on providing your child with a loan to help them get onto the property ladder. She can be contacted on 01392 210700.
To read the Law Society press release in full click here.
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