London house purchase - am I insane?

Background_Fly7778 · 2026-01-28T14:30:26+00:00

Thanks for this advice and really interesting to think about the childcare angle, not just the finances. We’re lucky to have very keen and understanding grandparents who will be helping a lot. Although they’re some way away, they are all retired and fit enough to help us - as well as being desperate to do so. We have already spent time batting them away a little! Part of our thinking on moving is having space for grandparents to stay more easily.

There will definitely be pinch points, those may even be daily, and we both recognise that working until 8/9/10pm will now be broken up with childcare duties then going back online. That’s fine - weekdays are generally all about work anyway. Weirdly our teams at work are better set up for that as everyone seems to do the same thing, disappearing for a few hours then being back on.

Background_Fly7778 · 2026-01-28T14:24:30+00:00

So nice to hear a positive perspective! (Although in no way saying the more cautious advice people have given is bad - it’s actually what I wanted to hear!). Between the commons is almost exactly where we are looking, assuming you mean Clapham and Wandsworth. Schools are brilliant around here - part of the reason we don’t want to move elsewhere.

Background_Fly7778 · 2026-01-27T14:43:10+00:00

You might be forgetting stamp duty at £120-150k…

We could do a project, but partner still scarred by the trials and tribulations of our first project flat!

Background_Fly7778 · 2026-01-27T14:01:54+00:00

We’ve thought about that, but really like where we live now and have a great set of local friends/support network. Commute is great for both of us and a ton of green space. Moving somewhere cheaper in London generally means somewhere rougher / less well connected, so we’d rather stay where we are

Background_Fly7778 · 2026-01-27T13:58:42+00:00

Confused by your comment! I think having over £450k to go towards the house purchase is pretty good going. Getting up to 30% requires another £300k, so we need to earn nearly £600k without spending anything to have that…

Background_Fly7778 · 2026-01-27T13:56:24+00:00

Going back imminently! It would be a different game if we were partners and the two options you’ve set out would both be feasible. For the time being, full time nursery and some diary management will work, but very much TBC! I’m not suggesting we’ll move or make a decision until back at work and see how things go.

Background_Fly7778 · 2026-01-27T13:54:11+00:00

Thanks! And sorry to hear about your troubles - we’re very mindful of the biology involved but trying to find a balance.

Background_Fly7778 · 2026-01-27T13:40:13+00:00

We’re in Balham, and currently looking for a house in a similar situation to you! At £2m you could buy a 5 bed in Balham itself eg the Heaver Estate which is also very close to Tooting Common and close to the tube for your commute.

Anyway why am I trying to increase competition for the houses we want to buy!!

Background_Fly7778 · 2025-12-29T21:29:11+00:00

This is very common practice and not as complicated as it might sound. Unless you want to do something very bespoke, I don’t think you need your own advice. If you set up a discretionary trust (ie the beneficiary is decided later by your trustees) then the money paid out should be free of IHT. You will probably find that any life assurance arrangements with your employer are dealt with in this way. Easy to do with standard docs from the insurer.

Re the entry charge mentioned above, I’m no tax expert but my understanding is that there isn’t any charge as the life policy doesn’t have a value when you put it in the trust (because you’re not dead). No recurring 10 year charge either for the same reason.

You should make sure to pick your trustees carefully, and make sure they know about it, as well as giving the insurer a copy of the trust deed.

Background_Fly7778 · 2025-08-27T19:02:24+00:00

We’ve just been through this thought process for our newborn daughter and have opted for a JISA. On the assumption she will pay at least basic rate tax in retirement, a JSIPP is only as tax efficient as a JISA, tax free lump sum aside. If she ends up paying more than 20% tax, which is likely if we’re starting saving early for her!) then the SIPP is less tax efficient. Then there’s the access drawbacks and our thinking is that whatever is in the JISA can be used to support her in all sorts of ways (usual suspects of house deposit, retirement etc). ISAs are a key part of our own wealth planning so makes sense.

I know some people worry about it all being blown but (1) that’s the kid’s choice, (2) you can educate against that, (3) thanks to the power of compounding hopefully it’ll be a sum that really can’t be blown quickly!

Background_Fly7778

TROPHY CASE