Can I Buy A House For My Child Under 18 in UK
In the UK, a parent or guardian can buy a house for a child under 18, but some essential factors must be considered.
Firstly, the child can legally own the property once they turn 18. As a result, the property must be held in trust until the child reaches the age of majority. A trustee will be responsible for managing the property and any income generated from it on behalf of the child.
Secondly, if the parent or guardian buys the property with a mortgage, they must have a deposit and income to meet the lender’s affordability criteria. It is essential to remember that some lenders may be willing to offer a mortgage for parents buying a property for their child, but this will depend on the lender’s policies.
Thirdly, there may be tax implications that should be considered before proceeding with such a purchase. For example, inheritance tax and capital gains tax may be factors to consider. It is highly recommended to seek professional advice from a financial advisor or solicitor before proceeding with a property purchase for a child under 18.
Overall, buying a house for a child under 18 in the UK is possible, but it is essential to consider the legal and financial implications before deciding. Working with trusted professionals who can guide you through the process and help you make informed decisions is crucial.
