I was not surprised to read the statistics released by L&G today regarding the financial support provided by parents to their children to enable them to buy property.
This is something I regularly discuss with clients when drafting pre-marital agreements and cohabitation agreements. Documents such as these seek to preserve family loans/gifts for the benefit of the child loaned to rather than this being shared with future partners or spouses. Unfortunately without the appropriate legal documentation in place this can be difficult to prove or protect later. It is easier and cheaper to take proactive steps to protect the position, rather than reactive ones later.
Lending from parents to help their children get on the UK property ladder will amount to £5bn in 2016, according to data from Legal & General (L&G)