Deciding and agreeing on how a property is owned
Joint ownership, rather than putting the property into a single name, ensures each partner has a legal share in the property.
With house prices still historically at high levels, first-time buyers in particular are finding it difficult to get a foot on the property ladder and are therefore buying with friends or siblings.
While this in itself is a good idea, all joint purchasers should be aware of the problems that could arise later - for example, what happens if there's a disagreement or one of them wants to sell the property? Or maybe one person has put in more money than another which can often be the case.
If these problems are not addressed at the start they can lead to difficulties and even financial loss.
The good news is that there's an easy way to deal with this.
Firstly, the property should be held as 'Tenants in Common' which means that each person holds their own share 50/50 or any other appropriate share, coupled with a 'Declaration of Trust Deed' which should include the following vital points:
- To show the amount contributed by each party to the deposit
- How big a stake each person has in the property
- Conditions in respect of any future sale
- Agreement as to how the mortgage should be paid in times of financial difficulty
- How the property is to be used - i.e. habitation or rental
- What will happen in the event of illness or death of one party.
SPECIAL OFFER
The cost of such documents normally cost £200.00, but if drawn up at the same time as the purchase of your property the fee will be reduced to just £100.00.
Contact the experts
Please e-mail Jenny Axe or direct who'll be happy to provide you with any information you need on joint ownership agreements.
