Buying A Property With Another Person
With ever-increasing house prices, 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.
This in itself is a good idea, but all joint purchasers should be made aware of the problems that could arise later e.g. what happens if they have a disagreement or one of them wants to sell the property, or 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 cause difficulties and financial loss.
There is 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 difficulties
- How the property is to be used ie habitation or rental
- What will happen in the event of illness or death of one party
The cost of such a document would normally be £150, but if drawn up at the same time as the purchase of your property the fee will be reduced to £75.
Contact Us
For advice, or to arrange an initial meeting, please contact either:
Paul Cowdery- Email Paul
Jenny Axe- Email Jenny
Alternatively you can call us on Basingstoke
01256 320555.