If you are setting up home together, but not getting married, you should strongly consider a Deed of Trust.

New house; new life together. Buying a home with somebody – whether it’s s friend or a partner – is exciting. But what happens if you split up? The processes that automatically protect married people who divorce do not apply to co-habitees – no matter how long you’ve been together. A Deed of Trust can prevent a heartbreak from turning into a financial disaster.

And it’s not just the people in the relationship who are at risk. If you’re a parent who’s helping your son or daughter with a house purchase, we can help you protect your share of the deal.

  • We can help with a Deed of Trust to protect your share of the house
  • We can arrange a living together/cohabitation agreement
  • Your Deed of Trust can be converted to a prenuptial agreement if you marry later

Deeds of Trust – What you need to know…

What is a Deed of Trust?

Simply put a Deed of Trust is a legal document that states the ownership of a jointly-held property.

Who needs a Deed of Trust?

  • If you are buying a property with anybody you are not married to then get a Deed of Trust.
  • If you’ve already bought a property with somebody you are not married to then get a Deed of Trust. It’s not too late.

Unmarried couples who buy property together often avoid unpleasant questions about what will happen if they split up, but it is better to have that discussion now to avoid loss later on.

A Deed of Trust is an opportunity to be fair and considerate of each other’s investment whilst the going is good, later on things may have soured and there will be no such opportunity.

Deeds of Trust do not just protect the property buyers either, they protect anybody who has helped make the purchase possible. Typically this is parents of young first time buyers who would have a great interest in protecting their investment and preventing having to pick up the pieces later on.

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Buying a house is expensive, and people often see a Deed of Trust as another expense they could do without, but in actual fact it is an invaluable safety net. Conveyancing solicitors are mostly interested in getting the purchase through, so most won’t even mention the benefits of having a deed or trust.

A Deed of Trust mitigates risk

Who owns your home? This is the question.

If you’re married and you split up, it doesn’t matter, both parties have an equal claim regardless of who put money in.

If you’re not married you will need to have hard evidence of some sort of ownership, having contributed to the mortgage, paying all the bills or investments towards renovations will not count towards anything.

If the case goes to civil court there is an incredible amount of risk, since without any proof of ownership one would stand to lose their share of the property, and have to pay court fees as well as paying the winning party’s fees.

There is no such thing as common-law marriage, and in civil court there will be no consideration for discretion, fairness or sympathy that there would be in family law.

Considering the difficulty with getting together a deposit to buy a house, being asked to gamble that money would seem insane, but that is what often happens if there is no Deed of Trust; betting that the relationship will never fall apart and standing to lose your investment if it does.

Our lawyers know very well the uglier side of situations where people should have had a Deed of Trust but didn’t have. We also know how to ask the right questions about intention and what needs to be in a Deed of Trust. We won’t over-complicate what is actually a straightforward process, but which is too often overlooked.

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Deeds of Trust – Key Points:

  • There is no such thing as a common law marriage
  • Do not rely on the conveyancing solicitor to deal with it
  • It will save you £££thousands if things go wrong…

How much is a deed of trust and how long does it take?

Drafting a Deed of Trust cost £2000 + VAT per property.

Creating a deed of trust for multiple properties at the same time will offer significant cost savings.

Under our single solicitor service we interview both parties separately for a fee of £120 each and then both parties together for a third meeting. This takes approximately three hours in total.

The costs of the interviews are then taken off of the drafting fee, serving as a deposit of sorts.

The entire process usually takes 2 – 4 weeks.

Talk to us about Deeds of Trust…

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