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Original poster

To buy house for children this way

40 replies

creando · 09/05/2026 19:06

just wondering about this, could be a non starter BUT my daughter (21) just graduated and wanting to move in with boyfriend. She’s always been a hard worker, has had jobs since 16 etc. I am not keen on her renting as it’s more costly that purchasing and house would also go up in value. She has a LISA and some money saved however her choice of profession is freelance so she wouldn’t have mortgageable accounts for a few years yet. We are not rich by any stretch but we have a lot of equity on our house. We’re both keen to help out but 2nd home tax is a worry. Could one of us take our name OFF our mortgage to purchase house for DD? Is this even a thing?

OP posts:
FudgeFudy · 09/05/2026 19:54

MaidsRoom · 09/05/2026 19:34

OP you sound a bit naive about the property market. Houses and flats don't always go up in value, as people who own flats right now and have lost money over ten years are discovering. Stamp duty is very high and so are the other costs of moving. If your daughter thinks there’s any possibility she might want to move elsewhere within three or four years (and how many 22 year olds are really ready to settle down?) then buying is a terrible idea which is likely to lose her money.

RE your husband buying it for her - it would still count as a second home for tax purposes as he wouldn’t live in it, and because he would still be married to a homeowner. So 5% extra stamp duty, capital gains tax etc.

I agree that as a pure investment property isn't great, but if the house they're buying is typical FTB fodder, so not too big or expensive, then they'd be really unlucky to lose more than they would have paid in rent over three or four years. I'd be thinking along the same lines as the OP (but not expecting anybody to get rich from the arrangement).

MaidsRoom · 09/05/2026 19:34

OP you sound a bit naive about the property market. Houses and flats don't always go up in value, as people who own flats right now and have lost money over ten years are discovering. Stamp duty is very high and so are the other costs of moving. If your daughter thinks there’s any possibility she might want to move elsewhere within three or four years (and how many 22 year olds are really ready to settle down?) then buying is a terrible idea which is likely to lose her money.

RE your husband buying it for her - it would still count as a second home for tax purposes as he wouldn’t live in it, and because he would still be married to a homeowner. So 5% extra stamp duty, capital gains tax etc.

Original poster
creando · 09/05/2026 19:28

This is all hugely helpful thank you. Looks like guarantor mortgage could work. If she does decide not to stay at least she can then sell and maybe make a profit. The area she’s looking at is very up and coming. Entirely up to her but nice to have an option to support her if needed

OP posts:
Ohgoose · 09/05/2026 19:24

BeardySchnauzer · 09/05/2026 19:23

Yes - that’s my understanding. A cohabiting couple can have a property each but a married couple can’t. There are also possible stamp duty issues if you come off the deeds completely and gift your share to your DH (and if you weren’t married capital gains tax potentially)

given she is moving in with her boyfriend and given her age I’m not sure I would be tying her into a property so soon. Give her a little freedom for a couple of years

True. If she’s freelancing there’s no guarantee she’ll be staying where she is for a while.

icepop2 · 09/05/2026 19:24

She's so young I wouldn't buy yet, they might want to move around a bit with jobs or just try living in different places. I'd suggest they rent a room in a shared house with bills included. Check out spareroom or openrent, it's much cheaper than a mortgage and paying all the bills IME.

One bedroom flats have also been going down in value if that's what they were thinking of buying and ground rents and service charges going up and up.

Ohgoose · 09/05/2026 19:23

creando · 09/05/2026 19:19

Yes married. DD has enough for a deposit it’s just securing the mortgage which might be a faff

Show quote history

If the guarantor mortgage is possible then go for it but she needs to think about protecting your investment and her deposit if her partner isn’t contributing. Would she buy it and they live with her?

BeardySchnauzer · 09/05/2026 19:23

Yes - that’s my understanding. A cohabiting couple can have a property each but a married couple can’t. There are also possible stamp duty issues if you come off the deeds completely and gift your share to your DH (and if you weren’t married capital gains tax potentially)

given she is moving in with her boyfriend and given her age I’m not sure I would be tying her into a property so soon. Give her a little freedom for a couple of years

SourdoughSally · 09/05/2026 19:20

I think if you're married then it doesn't matter who's on the mortgage, you both own it so any property would count as a second home

Original poster
creando · 09/05/2026 19:19

BeardySchnauzer · 09/05/2026 19:18

Are you married?

Yes married. DD has enough for a deposit it’s just securing the mortgage which might be a faff

OP posts:
BeardySchnauzer · 09/05/2026 19:18

Are you married?

SavedByTheBells · 09/05/2026 19:17

I know someone who did this and it worked out fine but I don't know what second home tax is, maybe that wasn't a thing when they did it

Original poster
creando · 09/05/2026 19:16

Nevertwayne · 09/05/2026 19:14

I saw an advert about some kind of guarantor mortgage thing where parents can help their kids but can’t remember who the lender was

That’s interesting and sounds like it may be a solution. Thank you

OP posts:
Original poster
creando · 09/05/2026 19:16

Thanks for this - there would be no strings. I just don’t see the value in renting when she could be living in an investment. I suppose my question was really if it can be done or not

OP posts:
Nevertwayne · 09/05/2026 19:14

I saw an advert about some kind of guarantor mortgage thing where parents can help their kids but can’t remember who the lender was

redfishcat · 09/05/2026 19:13

You need legal advice, but honestly, as you don’t know what your future holds, I would keep my own house for me and my husband.
Let your daughter find her feet career wise, and in a few years she may well be stable enough to buy for herself, or she may have decided to take the equity and emigrate to Australia.
Gifts can’t have strings or resentment of what she does with the gifted money could cause unforeseen consequences

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