Dear Mummy and Daddy….you know the way I love you? Well, any chance of a cash injection?!

The Bank of Mum and Dad – it’s the best one out there!

Low to zero interest rates, indefinite repayment periods, repayment holidays and sometimes even loans being written off….No wonder the Bank of Mum and Dad is the most popular lender out there!

Those aiming to get on the property ladder often need a little financial assistance from mum and dad. Property prices have been increasing faster than the average salary and as a result the younger generation have been struggling to get themselves onto the property market for some years now. If you are lucky enough to receive a little cash injection from mum and dad to use as a deposit then great – this gives you that extra boost you need to get onto that first rung. Another way in which mum and dad have been there to help is to jointly purchase a property with their child and share the mortgage load.

However, since April 2016 this practice has significantly decreased and it’s all down to the Stamp Duty changes. Since April 2016 any such purchase has faced a 3 per cent stamp duty surcharge if the parents already own their own property.

So, it’s back to the cash injection. Mums and Dads are once again favouring the cash hand-out to help their little darlings purchase their first home. This might however have inheritance tax implications. If you are a parent and are thinking of helping your child by way of a gift of cash to assist them with a purchase, or perhaps for something else, please seek advice regarding the tax implications. We have a dedicated estate planning team here at MTB who are only too happy to give you a steer as to the pros and cons of gifting money to your children now as opposed to in your will……Oh, and on that note, have you got a will in place?!

Contact us now for a steer in the right direction by calling 02890 329801 or by emailing us at Find us online by searching MTB Solicitors for a full range of our legal services.