More than a third of parents in the West Midlands now see it as their ‘parental duty’ to contribute to their child’s first property purchase, new research shows.
Researchers claim 35 per cent of parents feel they have to put their hands in their pockets, with around half gifting more than £10,000 to their child and 17 per cent contributing more than £50,000.
In the process, parents in the region are making major sacrifices, with 13 per cent remortgaging and a further nine per cent selling their home and downsizing, according to new research from QualitySolicitors Talbots.
However, the vast majority has no protection in place for their gift, with 80 per cent saying they
simply handed the money over with no legal advice and ‘hoped for the best’.
Martyn Morgan, conveyancing expert at QualitySolicitors Talbots, said: “It is natural for parents to want to do as much as they can to help their children get a foot on the ladder. However, the research shows that often their goodwill is misplaced and can actually lead to more problems further down the line if something goes wrong.
“Our message would be protecting yourself isn’t a sign of mistrust, far from it. It’s actually the best way of protecting the long-term relationships you value.”
As well as drawing on the bank of Mum and Dad, first time buyers across the region are looking at other ways into the property market with one in seven (14 per cent) saying they have bought or will buy with a close friend.
A further four per cent buy in order to become a ‘live-in landlord’, bringing in a tenant to help with mortgage repayments.