Students parents - any tips

quality_2

My situation - divorced, 2 kids living with their mother, eldest off in September to Uni, 40% tax band.
I'm buying him a flat but reducing the money given to his mother. Any tips on any benefits, allowancies, tax breaks or any other type of cash tips I should know about as I never seem to get any of the 'free cash' that so many others get?

Thanks folks

freebie_junkie

why do you need 'free cash' as you put it if you can afford you buy your son a flat?

emma_b_4

sorry dont know but how lucky is your son getting a flat bought for him

Snow_Angel

I'm afraid the only one i know of (as a student myself - have never owned a home) is that he doesn't have to pay council tax - Not sure how big the flat is, but if it's big enough for more than one - make sure the other tenant(s) are students too. Good luck with it - he's a very lucky chap....I wish my parents had been even close to rich enough to sort me out with a flat at uni - that way I wouldn't be in so much debt and having to read this board every day for ways to save!

Took_Me_Away

freebie_junkie wrote:

why do you need 'free cash' as you put it if you can afford you buy your son a flat?

Now now we are all entitled to try and get the best out of our money if you earn 10k or 1000k a year

tr3mor

Don't buy him a flat in the first year, he'll get a much better experience and make more friends if he stays in halls!

jimclark1967

Agreed, Halls are an invaluable experience not to be missed (even for a flat!)

JC

Snow_Angel

....another word of advice - it may be worth putting this post in the 'buying, renting and selling houses' thread, as I believe mostly students read this thread. You may get more help on there.

quality_2

Just for clarity, I am far from rich with no savings, I have remorgaged my house to release some equity to fund a deposit. Originally going to be 20% as a buy to let and I have since discovered that I only needed to obtain a 5% deposit if I act as guarentor for him. I have reduced the monthly amount his mother was getting as he no longer will be living with her.

I will be after a 2 bedroomed flat with the other room rented to an other student, rent from that will be £260/month and the reduced amount his mother gets will mean that this is cost neutral on my part. - savings

As it will be in his name, he is a first time buyer and we get a reduced rate from the bank. - savings

Unlike many other absent fathers I have faithfully provided for my kids going beyond what my minimum obligations should be. I have never had any benefits/breaks from the Government and I recieve the minimum tax relief and pay the top rate of tax. I just wanted to see him alright and was after any advice on how I can help fulfill this extremely expensive time when he is at Uni.

pollocmc

I take it the £260 excludes bills? Does that cover insurance? Have you/he laid down ground rules over maintenance of the flat. It's his so he needs to treat it as such. I'm not being an old grump. Just maybe you should think about things that will come up.

Can't think what benefits you could get from doing this. Only thing I can think of is if you have your own company (I don't know) you could sponsor him rather than just give him the money. There must be a tax break in there somewhere. You could agree with him that if he sells it that you receive a small % - might be small amount but might help the other sibling out?

quality_2

£260 excludes bills, I will insure it myself as I am bearing the risk, lawyer is drawing up a letter for him to sign that gives me full power over the sale and retention of any uplift in value after the 4 years. All that is in it for him is a decent roof over his head, company of his choice to share and indirectly a good credit rating. The other sibling is still at school and the same offer is available to him when he is older.
Ground rules are very clear, no parties, drugs, or decorating, putting things into the walls. The furniture will last 4 years and will not be replaced, if he breaks it then tough, he has to live with broken furniture.