Student loan application

Starbeck69

I am thinking of gifting my 18 year old child my house where I will continue to live, but would this affect her application or eligibility for a student loan in September 2025?

Emmia

Starbeck69 said:

I am thinking of gifting my 18 year old child my house where I will continue to live, but would this affect her application or eligibility for a student loan in September 2025?

Why are you doing this? If you're thinking it will evade care costs, or IHT, it won't as it's a gift with reservation of benefits. 

If the house is your child's then they can also choose to sell it, leaving you homeless.

Starbeck69

Thank you Emmia, I am aware of the points that you make. I just needed to know if this action could affect my child's application/eligibility for a student loan? Would she need to declare it as capital?

Regards

Emmia

Starbeck69 said:

Thank you Emmia, I am aware of the points that you make. I just needed to know if this action could affect my child's application/eligibility for a student loan? Would she need to declare it as capital?

Regards

The child "owning" the house wouldn't affect their loan, as it would be based on household income thresholds - i.e. What is your income? What is their income?

The decision to give them the house though must be for a reason? And you're planning to still live there - so it's not really a gift. They'll also lose FTB discounts they'd normally get when they actually want to buy.

The rationale for this gift is not clear and could lead to significant costs or downsides later on for you, or your child.

swingaloo

It may seem a good idea to you now but when she meets someone and they want to buy a house together she may end up resenting what you intend doing. Then if she marries and later divorces you could find yourself homeless. Terrible idea.

Brie

Does your child want the house?  And the responsibilities of being a home owner or potentially a landlord?

Ksw3

If they went to uni, would they live in the house? Is the house mortgage free?

Starbeck69

Thank you for your comments guys they are very much appreciated. My daughter would not be living in the house when she is at Uni & it is mortgage free.

Emmia

Starbeck69 said:

Thank you for your comments guys they are very much appreciated. My daughter would not be living in the house when she is at Uni & it is mortgage free.

Why do you want to give her the house? What's the benefit you're seeking by doing this?

You seem to want to give away legal ownership, but retain "control" of what I presume is your major financial asset.

Doing this doesn't evade IHT or Care Fees (as both will deem that the house still belongs to you) - which are the two common reasons people do this, but it does saddle your daughter with landlord responsibilities and removes her FTB status.