Tax Advice on Buying a Property For a Dependent

Posted on 10 May 2012 by Paula


Hi my son is saving for his first house. He has been working for 12 months as part of his 4 yr degree, and has saved £12 000. He is going back for his final yr in September. A friend of mine is selling the perfect property for him, he has been told that he is welcome back at work as soon as he has finished his course. The problem we have is how best to sort out a mortgage. My husband is a high tax earner and wondered if we helped him out would he get tax relief. Because of our income our son only gets the basic allowances and student loans.

Paula

I regret that we can not give tax advice, but I have referred your enquiry to our in house solicitor's Rollingson's who will be able to assist.

With regards to the mortgage there are lenders who, depending on affordability, will consider your husband acting as a guarantor for your son, consider a mortgage in their joint names or a possible regulated buy to let mortgage.  Each of these has it's own pros and cons and I recommend that your husband calls 0344 346 3672 and speaks to one of our independent mortgage advisers.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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