Buying a property with someone else: Lester Aldridge advises

A Declaration of Trust

Buying a property with someone else certainly involves trust! If you are considering part or joint ownership to get on the property ladder,

Lester Aldridge can help you to be prepared for all eventualities.

couple with model house

Life Matters for Lymington: the November article from Lester Aldridge has been written by Parisa Jones, who knows all about the advantages and pitfalls of this increasingly popular option to get on the property ladder and here explains the vital legal aspects to consider. 

Declaration of Trust: What you need to know when buying a property with someone else

With house prices in the UK rising, making it harder for people to get on the property ladder, part or joint ownership is becoming an increasingly more popular option. Whether you are splitting the costs with family and friends or with someone else, our specialist private client solicitors are more frequently seeing the importance of having a Declaration of Trust for when the property is later sold.

A Declaration of Trust is a document that distinguishes the financial arrangements between parties. This legally binding document can protect anyone who has a financial interest in the property and is useful in avoiding disputes when the time comes to sell the whole property or a share in it.

When buying a property with a partner, family or friend, no one thinks that anything could go wrong later down the line. However, in some cases, this does happen and it is always better to be prepared. We recommend anyone in this position to put a Declaration of Trust in place, especially if you are in one of these positions:

A)          An unmarried couple or are cohabiting with family or friends;

B)           If one person’s name is not on the mortgage;

C)           A family member or friend has contributed financially towards the property.

Although every case varies, the Declaration of Trust usually includes the following elements:

  • The amount of money that each party has contributed, as well as how much will need to the repaid if the property is later sold.
  • A percentage that each party owns and how this will be split if the property is later sold.
  • How much each party will contribute to the mortgage repayments.
  • A plan of how the property will be sold or bought out if the situation occurs.

Another important document to put into place when buying a property is a Will. By having a Will, you ensure that your wishes are followed if you pass away. If you already have a Will in place, make sure that it is updated when significant changes occur in your life, e.g. the buying of a new property.

Parisa Jones Lester AldridgeAs mentioned, a Declaration of Trust is an important document for anyone who is a buying a property with someone else or anyone who is receiving financial assistance from someone else. The document can be entered into at any time but is usually best if entered into at the same time as completing the purchase of the property.

Lester Aldridge’s Tax, Trust and Wills Solicitors are here to provide any legal assistance when it comes to preparing or acting on a Declaration of Trust. It is important that you have the right, educated advice and that the document is accurate and covers all areas that could become an issue in the future.

Please email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 01202 786153 if you would like to get in touch with one of LA’s Tax, Trust, Wills and Probate specialists.Parisa Jones
Senior Associate
www.lesteraldridge.com

Life Matters: Lester Aldridge Solicitors on a wide range of legal matters

Life Matters is a regular monthly feature on Lymington.com, which covers a wide range of legal subjects and is always written by one of the Lester Aldridge team. You can see a list of all published articles by clicking to the Lester Aldridge Solicitors webpage on Lymington.com here.Life Matters from Lester Aldridge Solicitors - logo

Free consultation on any legal matter

Lester Aldridge Solicitors are based in London, Southampton and Bournemouth - where the office covering the New Forest is situated conveniently close to the main Bournemouth train station. Their specialist teams in the various fields of law will be happy to advise and assist you, starting with a completely free initial consultation during which you can decide whether you feel able to trust them with your confidential information.  For more information please click here. Consultations are also available via virtual meetings : advice is available through phone, email, Skype and Zoom.

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