Addison O’hare Solicitors in Walsall is warning home-buyers who turn to the “bank of mum and dad” and increasingly the bank of grandparents to buy their home to prepare for all the eventualities, as generous family members tighten their belts.
Addison O'hare Solicitors, which is one of the national Law Society’s Conveyancing Quality Scheme members, says that many people have no choice but to turn to parents or other family members to help raise a deposit for a house without considering potential future pitfalls, even the possibility that their family lenders might need the loan back.
Dixon Wilton, Head of the Conveyancing department said: “Handing over a large amount of money, which could be life savings; with no legal structure in place is a minefield. Circumstances can change drastically. Couples buying their first home might borrow from their parents when they buy, but what happens if they subsequently separate?
“There are potential problems in relation to who owns what and raises the prospect of disputes. It is important to consult a solicitor on loan agreement terms, even with any potential problems for all parties involved.”
For more information please contact Dixon Wilton at Addison O'hare on 01922 725515
