Goldsmith Williams recommend protecting “bank of mum and dad”
Property solicitors Goldsmith Williams have issued advice in response to the increased levels of first time buyers.
They point out that for many first time buyers buying a house, raising the necessary deposit continues to present a challenge.
Eddie Goldsmith, Senior Partner, Goldsmith Williams, said: “Many first time buyers struggle to get on the property ladder due to the level of deposit they need.
He continued: “And because of this a good number, who are in the fortunate position of being able to, turn to the “bank of mum and dad”. “What these first time buyers and their parents, may not realise is that the investing parents should protect their interests in the property too.”
Mr Goldsmith explains that as they are a firm that not only offers conveyancing, but also a wide range of other legal services, one of the areas of law they routinely consider and take action on, alongside the property transaction, is the basis of ownership of the property.
They say that this is particularly important in the circumstances where the “bank of mum and dad” also has a stake in the property.
They go on to point out the opportunity to own property as Tenants in Common. In this case each co-owner owns a specific share of the property and this can be split however they wish.
So the child whose parents are also investing can take a portion of the shares which reflects the greater overall contribution they have made to the deposit.
Mr Goldsmith concludes: “First time buyers particularly look to their broker to “hand-hold” them as they navigate their first experience of buying a property.
“Brokers should ensure that they deliver on their clients widest expectations by recommending a firm that offers a service which not only includes conveyancing but also legal protection for the ‘bank of mum and dad’.”