Find out how Gransnetters helped their DC get on the property ladder

Our DD and DSiL were saving so hard to buy the apartment that they were renting. The mortgage payments worked out at £200 per month cheaper than their rent! They had both saved into Help to Buy ISA's. The landlord gave them a deadline to either buy or he was putting the apartment up For Sale. They were £5,000 short for the 20% (!!) deposit needed. We lent DD the £5,000 - all done legally through their solicitor with no date specified for the loan to be repaid. We never intended for the money to be paid back by DD insisted and pays us in small amounts as and when she can.

Not all parents are not that lucky to help there children but yes if they can what people don’t know this living wage is great and private pensions but all parents need to tell there children get it in to there brains because they will never get pension credits so if they don’t help or sort then there children when they get pension age they will suffer badly so yes all parents need to help and teach

If you are in a position to help, why not do it now when they need it, rather than leaving money in your will?

I would certainly consider helping out with a property purchase if I could as I feel it offers some security for the future. However, I would be keen to try to protect any money I gave in case of relationship breakdown if it was a joint purchase between my child and their partner.

I've squirrelled away an amount that can be used as a deposit, but DS isn't in a position to buy right now. This is intended to be a gift, but I'd like him to be able to safeguard it in some way. I was lucky - nobody was in a position to help when I was buying but the restrictions were much lighter, otherwise I'd have been in trouble.

Am in discussions atm re daughter's house purchase next year, and how to maximise the tax advantages of my (small) contribution. Not dying for 5 years seems to be key!

Yes we helped with the deposit to help our daughter . They
desperately needed a larger home with the late addition of a teenage stepchild, making four kids in a small rented house. I suggested they look into the possibility of getting a mortgage, offering help with the deposit. They also found they were eligible for the government scheme for 1st time buyers and were able to buy a new home. We are delighted it worked out so well for everyone.

We down sized four years ago and gave both are children help with deposits for there first houses

Always been there for advice & whatever financial help we could with all 3. On one or more occasions we had them live with us for a while in between selling & purchasing properties

We were unable to help any of ours on to the housing market. Not with any significant lump sums. Helped out with bits and bobs.

All three have managed to buy a property

My youngest son was buying a house the year I lost my DM so we were able to help with the deposit from my inheritance. There was no formal agreement and I am hopeful that if I need financial assistance in my later years he will help to support me !

Sadly it hasn't been an option as not in a financial position to do so but really it's much better to let them make their own way in life and be strong independent people..That's what I tell myself anyway!

What little I have I love to share.

We have two children who are now in their mid forties, only a year separates them. Around their 21st birthdays (1994) we put a deposit on a house near to their universities (almost all our savings at that time). They both lived there for a few years and rented out two rooms which covered the mortgage payments.
The agreement was that when one of them wanted to move away the other would buy them out or they would sell the house and split the proceeds.
After several years my son got married and wanted to buy his sister's share at the going market price - there had been a big rise in the market by then so we, mum & dad (without being asked), stepped in and contributed so that everything was fair and both had a manageable mortgage.
I estimate that in total we gave them both about 100k to get them on the housing market ladder. We don't regret any of it, it was all our suggestion and our choice. When I hear of the crippling amounts that some of their friends have to pay for their mortgages I'm so glad we did it. They always appreciated our help.
Through sheer hard work and prudence, we're both comfortable and happy in our retirement and pleased to have helped our children without them waiting to inherit.
On reflection, I realize that the original arrangement could have gone so wrong, but it didn't and anyway we would have both tried our best.

I haven't been in a position to help children or grandchildren as I have none, but I was able to help my sister and b-i-l to buy a property at auction by giving them money towards the price so that b-i-l didn't have to cash in his pension. Interest rates has gone to nothing and they couldn't get a mortgage so it was sensible for all of us.

We started help my DS to build a nest egg so they can go on the property ladder let her save her wages and work hard. Have tried to buy but people keep putting the price of houses out of reach. They put the houses up by another £3,000 so if they see something they have to look straight away.

All these council properties sold and taken out of housing stock. Do the purchasers feel any guilt? Not really a level playing field is it. Just saying.......

We have helped our son this year by giving money to him and his partner to set up the new ISA, which is available to first time buyers. I would love to contribute more and will give money on an ad hoc basis.

blueskies Why should they? Both of DD's properties were/are ex council. What should she have done, refused to but an ex-council house, at a time when they were the only property she could afford and continue renting until such time as even they were out of her price range?

Or were you thinking of the original buyers, most of those, as now, could only afford to own their own house because of the discount they got.

The fault is the fault of successive governments for failing to make sure that for every house sold, one, or possibly two, were built and for them to provide the finance for this to happen.

My daughter and partner bought their first house this year after renting for a while I gave them some money to help them with new flooring all through the house and new blinds, I think it's hard to get everything you need straight away that's why help out x

We were in the fortunate position of being able to buy houses for our children (coming up to 20 years ago).

Our thoughts were that they could have it then and make good use of it, or have it after we die and pay a considerable inheritance tax on it

It was a risk as our sons-in-law could have taken half of it should there have been divorces but happily that hasn't happened.

The children are appreciative but once the money was given we said it would not be mentioned again. We didn't want to 'hold' it over them.

If you trust your children and have the money, I recommend doing this.

Our own first house was taken on a 32 year mortgage with rates at over 15%. We were also very young (my fiance has to wait for his 21st birthday to sign the document). We saved every penny for a year to scrape together the necessary desposit and for varying reasons, had no parental help whatsoever.

I think it is much harder for young people today but feel that some don't appreciate that some sacrifices are necessary to make the property ladder. My heart goes out to those on minimum wage;. I am sure it must be a horrible struggle.

or even ... deposit!

My daughter and son graduated at the same time from university around the millennium. I had an ISA which had matured and gifted them £5,000 each which in those days was enough for a deposit on a pleasant ish terraced house in the North. I was pleased to help them on to the property ladder but both are renting now which is frustrating! Both had relationship break ups and were not keen to keep their houses, preferring to realise the cash. I have had to help one child a lot since and the other one a bit and though I would never let them down, I find it tough. I am in my mid 60s and can't afford to retire due to the financial help I give. I think that eventually, I will probably have to move to a larger house so that I can take my family in. I know that I am lucky to have this option.

Both my children managed to buy their own houses without our financial help.

I know how young people struggle to get onto the property ladder nowadays so, after my parents passed away, I decided to use my inheritance to part-fund the purchase of a second rental property. Currently it is self-funding and the intention is that, after university, my daughter will have somewhere to live.