Q&A: What’s the best way to invest for our baby?

From long-term saving to issues with selling a home, your questions answered

A Junior Isa could deliver strong returns over 18 years (Rex)

We’ve just had a baby and we’d like some advice on how to save for our son for the long term (without the money being eroded by inflation), while still having access to cash to meet any unexpected short-term costs. We don’t have a huge amount to start the ball rolling but would anticipate using a savings account for any child benefit, family gifts and a modest amount from our incomes each month.

B Evans, Wirral

A: Before you start saving for your son, it’s vital to have enough cash savings in your own names to cover any unexpected expenses so you wouldn’t need to withdraw money from an investment. I find that if parents have access to the cash, it is all too tempting to dip when finances are tight.

If you still want access to the money, I would suggest something like an NS&I Children’s Bond, which you will be able to set up on behalf of your son with investments of between £25 and £3,000. This bond is designed to be held for five years and the interest is accumulated tax free – although if you needed to withdraw any money, there would be penalties.

That said, the interest on the bonds is unlikely to give significant gains over inflation over the term of the investment.

If you are happy not to have access to the money, consider a tax-efficient Junior Isa, which lets you save more than in a children’s bond (£4,080 for 2015-16). The big drawback is that the money then belongs to your son and there is no access to any of the money before he turns 18, apart from in exceptional circumstances.

Given your aim of above-inflation growth over 18 years, I would suggest that the stocks and shares element of a Junior Isa would be more suited to your needs. This offers the potential for stronger returns than investing in cash, although putting the money in the market also carries the risk of the savings decreasing in value.

Q: We’ve decided to move and have put our flat on the market. We’re selling it with a share of the freehold in a small mansion block. The owners have been approached by developers wanting to extend the roof to make penthouse flats, but this hasn’t gone any further than informally asking us what we think. I guess it would mean the communal areas turn into a building site for a while and there would also be the noise of the construction. Do I need to tell prospective buyers?

C. Bates, Islington, London

A: I understand your dilemma.You are ready to move house and want to do it as quickly while getting the best price for your property. But although the plans are speculative, you do need to speak up.

Vendors must give buyers any information that could affect their decision to make an offer. While issues like structural problems and noisy neighbours jump to mind, I would suggest development plans also come into this category.

We have moved on from a time where an agent would work only in the interests of the seller and gone is the “buyer beware” or “sold as seen” culture, with more responsibility and regulation being placed on the estate agent and therefore the seller.

During the conveyancing process, the buyer’s solicitor will request information including details of any notices of development, which you will have to sign. Any non-disclosure could put you at risk. There are steps buyers can now take if they feel pertinent information wasn’t disclosed and they can look for compensation. I suggest you seek the opinion of a specialist solicitor.

Need to resolve an issue? Write to Kate Hughes: kate@fitforprint.co.uk