These days it is harder than ever to get on the property ladder. According to Halifax, during 2010 first-time buyers put down an average deposit of £28,770, 21% of the purchase price. This leaves would be first-time buyers having to save up for many years, forcing up the average age.
So what is the solution?
One answer could be equity release, if parents or grandparents are able and willing to help. Some people call this a ‘living inheritance’. Equity release plans from SHIP members come with important legal safeguards but, as with all financial matters, there are downsides:
- Releasing equity to help family members reduces the amount available for yourself.
- If you have more than one beneficiary, it is possible that the inheritance to other relatives is affected.
- As always, professional advice is essential. Whether you are hoping to purchase your first home or wishing to help your family, please contact us for advice.