My stepchildren are 19 and 16, both in full-time employment. At present, they live in Oxfordshire and cannot afford the rental prices or deposits for properties in that area. My husband and I would like to help them out, but also have strict boundaries about not just handing them cash. Our ideal scenario would be to have all four of us named on the mortgage and all four of us paying equal amounts towards the mortgage. As one is not 18 yet we know this is impossible, but would like to know what the nearest option would be. I am afraid that if we buy the property and just rent it to them it will be classed as taxable income for us, and it doesn't give the kids the fulfilment of owning a property.

Arthur Weller replies:
You could lend them the money to buy the property in their own names. As part of the loan agreement you would have a charge on the property, similar to a mortgage. It is much 'healthier' in the long run if the property is in their own names, but with a charge on the property your loan is (relatively) protected.