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Buying a Property for an Adult Child


Buying Property for an Adult Child

Thinking about buying a property for an adult child?

Many young people are struggling to get on the property ladder. Their dream of owning their own home seems a very long way off.

That’s why some parents are stepping in and providing the financial help.

Buying a property for an adult child as an investment

If you are approaching retirement you might be considering buying a property for an adult child as part of an  investment plan for your own retirement. Many people are preferring property as a way of investing for retirement instead of pensions.

If you buy a property for your child to live in and the property goes up in value there could be a better return on investment than some other types of savings or pensions. Just like any other investment it needs careful thought and professional advice before leaping in.

In a previous post I wrote about families sharing a home together which discusses some of the problems people can discover when they decide to pool their resources and live in one household. There are tips on avoiding some of those difficulties in that article.

But it’s also the case that investing in a property for an adult child can be risky due to the relationships involved. So it’s very important to decide how to protect your investment.

How could your investment in the property be at risk?

There are a number of situations in which an investment in your child’s property could be put at risk.

Apart from the risk that the value of the property could go down, there are some other potential risks to consider.

These are some of the situations that could affect your ability to get back your investment:

  • Your child’s financial problems
  • Breakdown of the relationship with your child
  • Your child’s cohabitation, divorce or separation from a partner
  • Death or mental incapacity – yours or your child’s

In all theses situations the parents’ investment can be put at risk.

Is your name on the Register of Title?

Even if you  ensure your name is on the register of title along with your child’s name there can still be barriers to selling the property or getting back the money you have invested.

Owning property jointly with your child can give you some control over what happens to the property but co-ownership doesn’t itself necessarily protect you against the potential difficulties.

Our four part Guide to Co-ownership explains why and offers some tips and solutions.


The essential Guide to Co-ownership

It’s really important if you own property jointly that you have a clear understanding of the law of co-ownership. Owning property jointly has special rules and responsibilities. Some of the rules create hidden traps.

That’s why I’ve put together a Guide to Co-ownership with the essential points co-owners need to know about jointly owned property.

The guide is in four parts and each part focuses on a separate aspect of co-ownership. Each part of the guide is in clear, easy-to-digest sections. The Guide to Co-ownership explains how mental capacity and inheritance issues for example, can affect jointly owned property.

Part One of the Guide to Co-ownership is available absolutely free to download

The rest of the four part guide is available through our BE My Own Lawyer members area.


Read more articles about retirement and property

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Moving abroad – what if you lose mental capacity?

About the author

Image by Simon Howden courtesy of freedigitalphotos.net