Helping daughter buy a house

cazziebo

I've searched this part of the forum and can't find anything although I'm sure this issue has come up before.

Daughter currently renting a flat. She is single, with newborn, currently on maternity leave and earns just under £20k.

I've paid off my mortgage on a property worth around £250k. I don't have a huge amount of savings (around £15k?). I'm self employed although currently earning around £100k. I probably have 10 years left of full time work.

What's the best way to help her buy a house? The ones we're looking at are around £100k - £125k.

Thrugelmir

cazziebo wrote: »

I'm self employed although currently earning around £100k. I probably have 10 years left of full time work.

Only £15k of savings? There's the place to start.

cazziebo

Thrugelmir wrote: »

Only £15k of savings? There's the place to start.

Not sure what you mean? Or maybe I wasn't clear - I wouldn't want to put more than that into this - I have other children and some plans and ambitions of my own!

marmitemum

Does she have any savings herself?

cazziebo

marmitemum wrote: »

Does she have any savings herself?

Less than £5k.

amnblog

She sounds like a prime case for the help to buy scheme.

marmitemum

What area is she? Have you checked for any Help To Buy options in your area?

tlc678910

Hi, will your daughter need to pay for full time childcare when she returns to work? If she does it might be worth waiting to see how her finances are when she returns e.g. if she gets help with the childcare costs, tax credit, housing or council tax benefit. This will give you a better idea if she can afford to pay a mortgage (assuming you don't intend to pay it?)

cazziebo

amnblog wrote: »

She sounds like a prime case for the help to buy scheme.

marmitemum wrote: »

What area is she? Have you checked for any Help To Buy options in your area?

We're in Scotland and it looks like it's only new builds that are eligible. Might be wrong. However, the houses we are looking at are ex LA houses in a great area and are at least half the price of new builds in most areas.

tlc678910 wrote: »

Hi, will your daughter need to pay for full time childcare when she returns to work? If she does it might be worth waiting to see how her finances are when she returns e.g. if she gets help with the childcare costs, tax credit, housing or council tax benefit. This will give you a better idea if she can afford to pay a mortgage (assuming you don't intend to pay it?)

She pays rent just now and cost of housing will be something that she will have to budget for. One of the options is I buy the house and she pays rent in lieu of mortgage. I'm not sure how that works in terms of tax etc. I'm not even sure where to get this kind of advice?

marmitemum

Have you looked for any shared ownership properties?

cazziebo

marmitemum wrote: »

Have you looked for any shared ownership properties?

No - doesn't seem to be any in the area we're looking at.