Buying a second home (cash) for daughter

ratsmoneystuff

Thank you diystarter7 and macman for these additional insights and suggestions.  This is such a useful forum for advice and insights.  All your input is so very much appreciated - thank  you!

dimbo61

You state your daughter is not working so cannot get a mortgages herself ?
Have you looked at Offset mortgages with YBS ?
now when your daughter is working she could get a mortgage with YBS and you put savings into a Savings account offsetting your daughters mortgage  ( Friends and Family)
you gift her 25% deposits and she pays a mortgage every month ( with NO Interest ) as it is fully Offset 

diystarter7

ratsmoneystuff said:

Thank you diystarter7 and macman for these additional insights and suggestions.  This is such a useful forum for advice and insights.  All your input is so very much appreciated - thank  you!

Hi
No worries, good luck.
We all want the best for our kids and no one knows what is around the corner.
Thinking about it as I post now  - best to gift as you have the money if you are feeling daughter will look after and build on what you have given her. I say this because people, more and more are ending up in care homes via dementia/stroke/etc/etc and some, an unlce of mine was in a home close to 10 years as his demntia meant he was a risk to his wife and his son and family they lived with. This was in the north and I think they were pay 6k a month before the money ran out. So it is something else to consider.

As anotherposter  was talking about getting your daughter to borrow etc, personally if I was in your situation I would not want to lumber our kid, or grandkid with debt when you already have a nice amount of cash to live comfy on plus your pensions etc.


Good luck

ratsmoneystuff

dimbo61 said:

You state your daughter is not working so cannot get a mortgages herself ?
Have you looked at Offset mortgages with YBS ?
now when your daughter is working she could get a mortgage with YBS and you put savings into a Savings account offsetting your daughters mortgage  ( Friends and Family)
you gift her 25% deposits and she pays a mortgage every month ( with NO Interest ) as it is fully Offset 

Thanks for that - I hadn't come across offset mortgages before

Keep_pedalling

A couple of other considerations.

At the moment it appears that your joint net worth is around £950k so out of IHT territory but getting close to it, so gifting could be considered good advanced IHT planning.

You have 2 other adult children, are you planning to even this up with gifts for them or a change to your wills?

Sea_Shell

Keep_pedalling said:

A couple of other considerations.

At the moment it appears that your joint net worth is around £950k so out of IHT territory but getting close to it, so gifting could be considered good advanced IHT planning.

You have 2 other adult children, are you planning to even this up with gifts for them or a change to your wills?

Good point.


OP said earlier this month...

"The reason I ask is that my husband and I would like to make regular payments of £200 per month to each of our three adult children who each have very young children for whom they will need to start paying childcare fees in a year or so and are all currently struggling a bit. So the payments are intended to help each of them out during the next five years with their general costs of living."


Why now the need (want) to buy just one of them a house?

diystarter7

Sea_Shell said:

Keep_pedalling said:

A couple of other considerations.

At the moment it appears that your joint net worth is around £950k so out of IHT territory but getting close to it, so gifting could be considered good advanced IHT planning.

You have 2 other adult children, are you planning to even this up with gifts for them or a change to your wills?

Why now the need (want) to buy just one of them a house?

Freedom of choice as its their money, perhaps.

Section62

diystarter7 said:

As anotherposter  was talking about getting your daughter to borrow etc, personally if I was in your situation I would not want to lumber our kid, or grandkid with debt when you already have a nice amount of cash to live comfy on plus your pensions etc.

There can be legal advantages to the house being funded by debt if the situation arises where the offspring goes through a relationship breakdown and the partner has been involved in contributing towards the home.

Buying a home outright with cash can cause complications in relationships and breakups later on.

In situations like this it is worth getting advice from a solicitor or estate/inheritance planner, and shouldn't necessarily be seen as "lumber[ing]" a "kid" with debt.  Debt isn't always a bad thing.

ratsmoneystuff

Keep_pedalling said:

A couple of other considerations.

At the moment it appears that your joint net worth is around £950k so out of IHT territory but getting close to it, so gifting could be considered good advanced IHT planning.

You have 2 other adult children, are you planning to even this up with gifts for them or a change to your wills?

Thanks for this.  We would change wills to reflect any gift.  2 others are in different circumstances to the third.  There's a complex back story (isn't there always? but certainly a case of 'need' rather than simply a random thought of one over the others. 

Sea_Shell

ratsmoneystuff said:

Keep_pedalling said:

A couple of other considerations.

At the moment it appears that your joint net worth is around £950k so out of IHT territory but getting close to it, so gifting could be considered good advanced IHT planning.

You have 2 other adult children, are you planning to even this up with gifts for them or a change to your wills?

Thanks for this.  We would change wills to reflect any gift.  2 others are in different circumstances to the third.  There's a complex back story (isn't there always? but certainly a case of 'need' rather than simply a random thought of one over the others. 

Fair enough.

However, maybe tread carefully when treating your children differently, especially if they're all struggling in their different ways.