By buying a property jointly, parents can help their children onto the housing ladder by enabling them to buy a home that would have otherwise been out of reach. Both the parents and their son/daughter are named on the mortgage deed, and the lender bases its decision as to how much it will lend on the combined income of all the applicants. Typically, the available mortgage is calculated by subtracting the parents' own mortgage repayments from their income before multiplying by four, then adding in the child's own salary.

Philip Davies, Chief Executive of Linden Homes, a developer which has seen interest from purchasers in buying for their offspring, comments:"Children struggle more and more to fund their own first home purchases. Gifted deposits have been a common solution in the past, but as property prices rise even further out of reach of starting salaries, bridging the affordability gap becomes a bigger problem, especially in London and the south east."

A joint purchase requires a much greater commitment on behalf of the parents than a gifted deposit, but there are advantages for the parents too. They are likely to have greater input in both the choice of property and involvement in future decision-making over the purchase. 

First time buyer, Emma Brickwood, 22 was struggling to get onto the housing ladder until her mother Susan came to the rescue and offered to jointly purchase a two-bedroom apartment at Linden Homes' Evolution development in Leatherhead.

Susan Brickwood entered into a joint mortgage on the £232,500 apartment, allowing her daughter to secure the property she wanted rather than continuing to rent. Emma, who works as a trainee Chartered Accountant and earns a salary of £22,000 per annum, said: "My salary while I'm training is not large enough to buy my first home, so without my mum's help it would have been impossible. Her investment means I can relax in the knowledge that I am on my way up the property ladder."

Two other first time buyers at Evolution have also bought jointly with their parents. The developer is enticing first time buyers by paying the 5% deposit required plus the stamp duty. The incentive typifies the way in which developers are vigorously wooing first time buyers.

The Surrey town of Leatherhead is situated just a short distance from Epsom, Woking and Guildford, and is a 35-minute commute from London Waterloo.   

Linden Homes achieved excellent marks in the new Home Builders' Federation customer satisfaction survey in February 2006. The company was awarded five stars out of five for quality of build, and four stars out of five for whether or not the customer would recommend the company to a friend. To find out more, visit: http://www.lindenhomes.co.uk/