Most residential conveyancing transactions are usually made between owner-occupiers selling to other, prospective, owner occupiers and once a buyer has found the property which most suits their needs he or she will instruct a residential conveyancing solicitor to help ensure the smooth and efficient exchange of contracts, ensuring a full legally recognised change of ownership.
However, residential conveyancing solicitors across Sussex, Hampshire and throughout the South of England are receiving more and more instructions from clients who wish to buy investment property.
When thinking of buying a property as an investment, most interested parties would think of straightforward buy-to-let arrangements which can generate an income and, hopefully, a healthy profit on resale. However, property solicitors are seeing an increasing number of requests from parents who want to provide a long-term investment for their child, as well as getting them onto the so-called ‘property ladder’, by buying a property for them in early childhood.
For some parents, the thought of paying inflated university-town rents while their child is studying can persuade them to buy a property for their child to live in while they are in higher education. If the property has several bedrooms, it can also generate income through student rental agreements to offset the cost of a mortgage and this may be financially prudent.
However, some parents will seek to make a long-term investment for a child by buying a property in the child’s first year of life with the express intention of this property generating income and being an appreciating capital asset for the child. It may also serve to be the child’s first home and this negates current worries about problems of becoming a first-time buyer as more and more young people struggle to get their first footing in the property market.
Potential buyers of investment properties will need to seek advice from investment specialists, as well as property solicitors, regarding Capital Gains Tax implications. If the parents are to become legal owners of the property, with the home in the child’s name as beneficial owner until his or her 18th birthday, the drawing up of bare trust declarations may mitigate a large tax bill.
There are a number of different ways in which a property can be bought for a child, including the setting up of a trust to purchase the home on behalf of the child, with a view to administering it until the child is 18, but these decisions must be fully explored with qualified investment advisors and experienced property conveyancing solicitors.
Our team of first-class residential property solicitors has expert knowledge of the local property market in Bognor Regis and Chichester, both areas of which serve the local university. We can also help potential house buyers in Portsmouth, Southampton and areas such as Midhurst and Havant. In fact, we can help potential buyers find and purchase properties across the South of England, and, if necessary, across the whole of the UK and abroad.
We pride ourselves on being an independent, top-notch, full-service law firm, with specialist financial advice lawyers on hand to benefit our clients who wish to buy investment property.
For more information on our residential conveyancing solicitors and all our property-related services, please call our Chichester offices today. Alternatively, to find out more about the team, please click through to the staff profiles featured on this page.