Property purchases

One of our clients has grown-up children who are training as professionals in London. He has helped them to purchase their first homes because their incomes were not sufficient to qualify for mortgages and of course the property values in question were relatively high.

To do this the client took out buy to let mortgages – which were the best available option at the time. This was all completely above board and disclosed to the lender but it is the children who are making monthly payments to the father so that he can service the mortgages. Both of the children will let their second bedrooms to make the economics work.

We think that a simple deed could be executed by the father and each child reciting the fact that the father holds the property as bare trustee for them and furthermore that the payments...