There are two different ways in which property can be owned when purchased jointly; either as ‘joint tenants’ or ‘tenants in common’. Both mean that the property is owned jointly but the way it is viewed in law is very different.
If you choose to own your property as tenants in common then this document will record the arrangement between you and what is to happen to the proceeds when the property is sold.
If you are buying with a partner, friend, parents or a business partner then it is extremely important to set out who owns what proportion of the property. This may not seem to be important when purchasing the property, but can avoid arguments and heartache if there is a disagreement in the future.
In its simplest form a Declaration of Trust can state whether the property is to be held in equal or unequal shares depending on who contribute towards the deposit, legal expenses and other related purchase costs.
In certain circumstance then you may also wish to consider the following to be included and reflected in the Declaration of Trust;
- If there is a mortgage then the proportions can be defined
- Other outgoings, maintenance and improvements
- A right of first refusal in the event that one party wishes to dispose of their share in the property. This would give the other party a right to buy that persons share at market value
- How a market value is to be determined in the event of any disagreement
These are matters that will need to be discussed between the parties and our team of specialists will then be able to draw up the right document to your satisfaction based on your unique situation. We offer discounted fees to our Will clients in respect of the preparation of Declarations of Trust.
The above matters will need to be discussed between the parties and our team of specialists will then be able to draw up the right document to your satisfaction based on your unique situation.
Our fee for the preparation of a Declaration of Trust and registering it is £355 plus VAT.
The service is an electronic and nationwide service. After a phone consultation to discuss your circumstances, all we need to begin work is a copy of your title deed. Following that, we get to work and will have a draft sent to you within one week.
Contact us on 020 7157 9981 to speak to an expert or message us below with a query.