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Issues and possible solutions
If you aren't able to make one of the parents' evenings, Skipton has produced a list of ways in which parents may be able to help their kids fly the nest
If you are a parent in a position to help your kids financially:
- you could free up some capital to help with the deposit on their first home, if you have built up sufficient equity in your own property.
- you could act as a ‘guarantor’ for your child. Guarantor mortgages can be offered to young aspiring professionals if it is likely they would one day be able to meet the repayments themselves.
- you could give your children their inheritance early to help with their deposit and avoid losing money to capital gains tax further down the line.
- you could gift money to your kids to help them onto the property ladder. Most kids could actually afford the monthly repayments but not the deposit.
- you could buy a property to let to your kids, with proper tenancy agreements.
- you could buy a property for your kids to rent whilst at university and afterwards sell and give any increase in value to them for their deposit.
- you could extend your home to form a separate flat for them to live in, giving you more time to yourself.
- you could lend them money to help them pay the deposit or MIG on their property.
If you are a parent who is not in a position to help your kids financially:
- you could encourage them to make regular savings towards their deposit, e.g. save tax-free with our Cash ISA.
- they could look at buying their first property with friends. This would reduce the amount each would need to pay towards the deposit and the monthly repayments.