How can a teenager buy an investment property in the United Kingdom?
In the UK, legally children under the age of 18 – they are considered a minor - are not allowed to own property or land. Therefore, if you are planning on buying a property for a minor, you can set up a trust until the child is 18 years old and allowed by law to own a property. Alternatively, there is the option of a specific mortgage product that allows parents to buy a property for a minor by setting up a company. Setting up property a trust Parents helping their children to buy a property is not new; in reality, it has become the norm for many families as first time buyers struggle to get on the property ladder. So how can parents get ahead of the game and secure a property for their children earlier in their lives? One answer is setting up a trust. There are two types of trust in which a property can be held – a ‘bare’ trust or a ‘constituted’ trust. A bare trust Also known as a simple trust, with a bare trust the assets, in this case the property, is held by the ...