Financial contributions to property purchases

Recent research from Legal and General has predicted that by 2025, up to 357,200 property transactions each year will be made possible by gifts from family members.

As the number of home purchases funded by gifts from family members has increased, so has the value of the financial contributions. The value of these contributions is expected to reach £10 billion by 2025.

While financial contributions from family members can make it easier for buyers to step onto the property ladder, it places a burden and risk on the people making the gifts. It can also have significant legal ramifications for both parties.

If you are considering making a gift to a family member in order to facilitate a property transaction, it is important to understand the potential legal effects. While we are unable to give financial advice, here at TMJ, we are experts in Private Client law, and we can advise on the relevant legal areas, such as potential inheritance tax issues.

You might also consider this an opportune time to make or revise your will or consider whether to protect your financial contribution with a private legal charge.

Get in touch with us today to make a free, no-obligation appointment with one of our expert solicitors.