Property
For most people, a house purchase is the most significant acquisition of their lives.
However, there are various complexities and possible pitfalls you should be aware of depending on individual situations. It is therefore important to ensure that you are adequately protected.
I’m buying with my partner
When buying with your partner there are many things you should consider not just about your present situation but your future. Decisions you make now could affect you long term.
One of the main things to consider is whether to buy as joint tenants or tenants in common?
Buying a house as Joint Tenants means if one of you were to die the survivor automatically becomes entitled to the house, regardless of anything stated in the deceased’s Will. If you buy as Tenants in Common and one person dies, the surviving partner will not automatically be entitled to the property. To find out more about these options and what would best suit your circumstances please read our ‘Guide to buying a house together’.
Cohabitees are not entiled to the same rights as married persons so you should consider entering into a Living Together Agreement to protect your finances and property. This is a formal deed setting out all of your rights and responsibilities whilst sharing a property together, and in the event of a dispute sets out what should happen for your protection. Alternatively, you could enter into a Declaration of Trust.
We’re friends buying together
As property prices fluctuate, buying with friends is becoming an increasingly popular option. However, you should consider the following when buying, to avoid possible disputes in the future:
- How much money will you be putting into the property? Will you all be paying equal shares?
- How will you cover the deposit?
- Consider the type of contract you will take out on the property – joint tenants or tenants in common?
- Do you have protection if one person cannot / will not pay their agreed share? Do you need a guarantor?
- What happens if one person wants to move on / sell their share in the property?
Many of these issues could be covered by taking out a Declaration of Trust, a legal document which stipulates property shares.
I’m buying with a member of my family
Another popular way of buying property is with a family member. A recurring example of this can be seen when parents and their child buy a property together. Parents can see this as an investment opportunity, whilst the child can get onto the property ladder. This seems like a simple and safe way of buying property but disputes can still arise so be careful to consider:
- How the property will be brought? Contract type?
- How will monies be paid? Deposit? Mortgage payments?
- What if one party wants to move on / sell their share? Do you have buy-out options?
A Declaration of Trust provides a legal contract which covers issues regarding property shares, would help identify and cover these issues.
We’re already living together
If you are currently living together as joint tenants it is possible to change this so that the property owners become tenants-in-common instead. A situation when you may decide to do this is if your circumstances change and one person is now contributing more to the property than before.
To discuss this and other options





