2.
A Gift:
An outright gift is a common way to assist children with a property
purchase. This must be reported to any mortgage lender as some lenders require
confirmation that you are solvent and will not be acquiring any rights or interests
over the property. More cautious mortgage lenders may also insist upon a
Deed of Gift indemnity policy being taken out to protect the lender against the
possibility that you are declared bankrupt and the creditors claim a share of the
property. A reduction in your estate’s inheritance tax liability could be achieved
by making a gift, but you must survive for seven years from the date of the gift in
order for your estate to benefit.
3.
A Declaration of Trust:
The term ‘loan’ does not always sit comfortably with some parents who
do not wish to feel that they are burdening their child with further debt, however
the “no strings attached