GCSE results this week, A level results last week...the news is full of anxious teens reflecting on exam success (or failure), celebrating university offers or sweating on the clearing process.
Going to university is an expensive business since they introduced tuition fees. As a side effect, undergraduates are increasingly being helped out by parents and even grandparents, who want to lessen the debt the student walks away with after graduation.
This feature caught our eye, aimed at family members who might have the cash (£60,000 to be precise) to help out a university-bound relative.
The article covers the option of buying a property for a child or grandchild to live in while they are studying, saving them the cost of renting a room or living in halls. The journalist highlights the fact that a property with more than one bedroom can be offered out to other tenants in order to cover any associated mortgage payment, allowing the property owner's child to practically live rent-free.
There are other ways of reducing the financial burden on students but none offer more appealing benefits to the benefactor than property. Whether the house or apartment is retained as an investment vehicle long after the relative has graduated, or is sold at the end of the degree with hopefully an amount of equity, buying a property to house a university-bound son or daughter can make great financial sense for everyone concerned.
At London Residential, we have been helping parents house their student children for years. We know Camden Town and Kentish Town extremely well and both are conveniently located to some of the best universities and colleges in the country.
If you put £60,000 as the deposit on a property and borrowed the rest, your child could live in the property and with fellow tenants pay sufficient rent to cover mortgage interest costs.