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When it comes to helping your children hop up onto the property ladder, it’s always been the same, ‘give them some money’. But what does that really mean? Well, put frankly, it means you give them money you know you’ll never see again!

In a period where the cost of living crisis is taking hold for many and cash isn’t as readily available as it once was, what if there was a way to help your children onto the property ladder without the need of giving cash?

What if there was a way you were able to provide them with more funds than you would normally feel comfortable doing so in cash?

The good news is that there is a way and you may find yourself providing a more rewarding cash sum to use as a deposit.

At H D Consultants we can arrange for a mortgage lender to put a charge on your own home in the same amount that you wanted to gift your child in cash.

Furthermore, as long as you or your child has a 5% deposit, this lender will then consider a 20% charge on the equity in your own home. Which, as long as you don’t sell or default on the mortgage in the next 10 years, they take away the charge completely and its gone!

Your child will then benefit from being able to get on to the property ladder, using your home as a steppingstone. Also, by having their own cash deposit and theoretically a larger deposit through the charge on your own home, they will also be offered a beneficial rate, lowering their monthly mortgage payments. So in reality you have not only helped your child buy the property, you could also make it cheaper for them!

All the while, your own cash has remained in your bank.

In today’s housing market, getting on the property ladder can feel overwhelming, especially for first-time buyers. Fortunately, there are platforms that make the process easier by offering detailed property listings and reviews, providing insights on everything from neighborhood conditions to landlord responsiveness. Whether it’s for a family home or student housing, these platforms give prospective tenants and buyers the ability to compare properties based on real feedback, helping them make informed decisions.

Reviews often highlight key factors such as maintenance issues or the overall living experience, ensuring that no surprises arise once you’ve moved in. By using these platforms, not only can individuals find properties that fit their needs, but they can also gain the confidence to make decisions that suit their long-term financial goals.

Property management services play a crucial role in ensuring that tenants and property owners have a seamless and positive experience. From handling routine maintenance to addressing urgent repairs, these services take the hassle out of managing a property.

They act as a bridge between landlords and tenants, facilitating smooth communication and ensuring that both parties’ needs are met efficiently. Additionally, property managers often conduct regular inspections to ensure properties are well-maintained, helping to preserve the value of the investment.

Among the top property management providers, Threshold Property Management stands out for its comprehensive approach. They offer personalized services tailored to the unique needs of each property, from tenant screening to lease enforcement. Just as you might use a charge on your own home to help a loved one buy their first property, these platforms offer valuable tools that simplify the search for a new place to call home.

A smooth transition between tenants is essential for maintaining a property’s value and appeal. Move-in and move-out cleaning services ensure that each unit is fresh, sanitized, and ready for its next occupant. Whether a tenant is leaving or a new one is arriving, a deep clean helps remove lingering dust, grime, and any signs of previous use, creating a welcoming environment.

Property owners and managers rely on professional services to handle the heavy lifting of turnover cleaning. That’s where Crystal Clean Services comes in, offering top-tier move-in and move-out cleaning that leaves every unit spotless. Their expert team tackles everything from deep carpet cleaning to scrubbing kitchen appliances, ensuring no detail is overlooked. A pristine space not only makes a great first impression but also helps set the stage for a smooth leasing process.

When it comes to real estate investment, professionals like Alan Stalcup exemplify how investors can combine their career pursuits with their personal passions. Stalcup, who is deeply involved in various investment activities, balances his professional career with personal interests such as surfing.

His website highlights a multidimensional approach to business, emphasizing the importance of maintaining a healthy work-life balance. For investors looking to take a similar approach, learning from figures like Stalcup is beneficial.

His insights into balancing professional commitments with lifestyle choices can inspire those involved in real estate to approach their investments strategically while staying true to personal passions. You can follow Stalcup’s journey and gain more investment insights by visiting his Twitter page at https://twitter.com/alan_stalcup.

Let’s look at an example from the lender:

Value: £180,000

Mr Wilson is 55 years old and earns a reasonable income as a teacher. His step-daughter Christine has recently graduated from university and he’d like to help her buy her first home. However, he doesn’t have savings to spare.

Christine has saved £9000 – a 5% deposit toward buying the flat she’s chosen and wants to borrow £171,000. George can’t spare any cash but he does own his home.

The lender allows George to use some of the value of his home as security for Christine’s mortgage. By doing this he can help Christine get a more favourable interest rate than she’d otherwise be able to get.

George isn’t using the whole value of his home as security, just the £36,000 needed to secure Christine a better interest rate. Assuming Christine keeps her mortgage up to date, the charge on George’s property comes to an end after 10 years.

 

If this is something you can relate to and would like to discuss how we might be able to help you, help your children to get on the property ladder, speak to a member of our team. Undertaking proper planning with real Advisers, can make the world of difference!

H D Consultants are an award winning, long established multi-adviser firm based in Colchester.

We operate across several markets as residential mortgage brokers, BTL specialists, commercial finance & bridging finance brokers, equity release/lifetime mortgage consultants, life insurance advisers and will writing & estate planners.

Visit www.hdconsultants.net for more information or contact Austyn Johnson on [email protected] or by telephone on 01206 577 266.