How can I best use the equity in my house to provide a lump sum for my sons to get them on property ladder ?

Question

I want to help them but still leave enough equity for my old age. The only way they can get started is on a shared ownership scheme and they could not afford the mortgage. If I paid the 25% required then they would only need to find the rent money, but this amount was to be for my pension.....Stuck for the answer. Anyone got any suggestions please ?

Answer 1

My advice to you is not to put your retirement at risk by even considering this. Your sons must stand on their own feet and save their money for a deposit and be in a financial position to afford to pay a mortgage.You will do them no favour by doing it for them as they will always rely on you to bail them out.While I understand your desire to help them I do not understand the need for today's young people to own their own home at all costs.Surely there is time for this very long term commitment which ties them down before they have seen the world and lived their lives a bit.I did not own my own home until my children had grown up and left home and it did them no harm to live in rented accommodation.Due to hard work and speculation I now have my own home paid for but I lived my life first until I was ready to tie myself down in one place. Renting gives you the freedom to relocate for work if necessary and travel around to better your life and opportunities.
Hope this advice helps you decide.

Answer 2

If you remortgage your current property to release the equity, you could then buy the shared ownership property yourself.  In, say, 10 years time, when your sons are earning more, you can either sell it to them for an appropriate amount (maybe discounted) or sell it on the open market - either way, the sale value would be your retirement fund.

Answer 3

Best solution is have them to stand on their own 2 feet and save for it, I never expected my parents to help me.