With the difficulty in saving enough for a deposit on a first time purchase it is increasingly common for parents or other family members to assist financially with contributing towards a property purchase.
We can advise on the issues to consider and ensure that everyone involved knows where they stand legally and the arrangements reached between everyone are, if necessary, properly recorded in the correct legal documentation.
Issues to consider:-
- Is the assistance an outright gift or a gift with certain provisos/conditions attached?
- Is it a gift to offspring alone or to them and their partner?
- Should there be some adjustment in gifts made in the donor's Will to reflect the lifetime gift for the purchase?
- Is the donor of the gift to have a share in the property?
- Is the assistance not a gift but a loan to be paid back?
- When is the loan to be repaid?
- Is the loan to be 'secured' on the purchased property?
Whether you are the parents providing the funds or are the property buyers we can deal with the above funding issues within the context of the property conveyancing process.