The majority of houses are no longer bought by married couples. As exciting (and often stressful!) as buying a new home is, it is of great importance to document how a property is to be held in the event the property ever needs to be sold. It is often the case that many people have not given any thought as to what will happen to the property should the property ever need to be sold, for instance, upon a relationship breakdown. In such a case, if you are cohabiting with a partner or a friend and are contributing towards the cost of your home, you are not legally entitled to the same rights as married couples and therefore, it is strongly recommended that you protect your financial interests.
What can be done?
A Declaration of Trust is a legally binding document which can be used to determine each individual’s financial contribution to the purchase price of the property and can establish what each party is entitled to should the circumstance arise where the property needs to be sold. It also confirms what shares the parties hold the property and clearly defines how they will contribute to mortgage payments.
This is not legal advice; it is intended to provide information of general interest about current legal issues.
If you are buying a property with someone else and would like to protect your respective interests in the property please contact Gregory John at Gepp and Sons who will be happy to discuss the options available to you. Greg can be contacted on 01245 493939 or firstname.lastname@example.org