You are not alone. The Bank of mom and dad has been busy over the last few months. We have had 8 new registrations since May 2019, ranging in price from £500,000 to £2,000,000 for some lucky offspring!
According to the BBC, the Royal Bank of Mum & Dad is the UK’s 10th largest mortgage lender, gifting or lending over £6.2 billion to their children to get on the property ladder.
With mortgage criteria at their most stringent and salaries at a 50 year low, it is hard for young people to get on the property ladder without parental help.
For parents, it gives them peace of mind knowing they have provided a solid foundation for their children’s future. Gone are the days when £30,000 was a 10% down payment for your first Chelsea flat.
For today’s parents, it’s a tossup between paying 40% inheritance tax or gifting money to their children before their expiry date!
It is a good time to be buying as there is little confidence in the market and sterling is low.
Property buying service
We help our clients from start to finish. From tax planning and finance to make sure when we find the right property there are no hidden surprises. Our after-care service helps clients settle in.
“You’ve been absolutely amazing, calm, unflappable and a really useful ally and friend in all of this. Really appreciate all your help and hard work throughout. Very lucky we had you on our side. “ HA Fulham
A good buying agent watches the market every day, is alerted to new listings up to 4 weeks before they go on the open market. Buyers represented by a buying agent are committed and serious, these buyers are more likely to find good deals, sellers are far more likely to show their bottom line if they are confident a buyer will perform.
We make sure you have a complete financial analysis of your purchase and investigate matters that could have an impact on quiet enjoyment, legal rights and value.
Case Study 1
We bought a short lease for a client with a delayed completion date. This enabled us to secure an expensive property whilst staging the payments over many months with the lump sum balance likely to be close to a year apart.
Before instructing lawyers and finalising the offer we also uncovered a potential £40,000 liability which we alerted our client to. He was then able to make an informed offer and commitment.
Case Study 2
We found a new-built property for another client and in conducting our due diligence discovered that the housebuilder had not completed all his planning obligations when he completed the site. We alerted our client who was able to address this issue in the negotiations and before spending thousands of pounds on legal fees.
Buying a property using an expert is vital when making such a large investment. Our specialist for buying properties is Jake Withers, who is no everyday agent.
Jake has a very interesting background for the role. He has a BA in forensic science and a Master’s in real estate from CASS. His investigative skills are an enormous asset and have proved their value time and time again when searching, finding and completing due diligence. Our clients also benefit from receiving a complete financial analysis before committing to a property.
Jake works closely with Farnaz Fazaipour, the Managing Director of Palace Gate, who is an established member of the super-prime property professionals and has a deep understanding of real estate assets with their attendant legal and tax implications.
Clients get the benefit of both when engaging Palace Gate to buy them a property. A wealth of experience and expertise, together with a deep-rooted relationship, all entirely at their disposal.
Buying property for children over 18 - parents buying for children over 18 tend to give/lend them the deposit, guarantee their loans or, for the lucky ones, buy outright.
A spare room is often a wise choice to rent, generating extra income that qualifies for tax relief.
Buying property for children under 18 - Children below the age of 18 are not old enough to own a property and as such you must set up the most suitable structure for purchasing.
Some of these structures are; a bare trust, an interest in possession trust, an accumulation trust & discretionary trust.
We work exclusively for clients who are recommended to us and we have built our business through such recommendation and word of mouth.
“Your attention to detail and fact-finding support meant that not only did we find what we were looking for, we also secured it at a good rate with no hidden skeletons” HF Knightsbridge
Please contact us on 0207 581 1631 for an informal chat or Jake Withers.
Palace Gate manages all aspects of property ownership and complex lifestyles.