Waters & Co’s Top 10 tips when joining forces to buy a home
Buying a property is one of the most important decisions you
will have to make. It is a significant investment and most people take this
step with someone else.
Law Society Chief Executive Desmond Hudson said
"sharing the financial burden of the purchase and the day-to-day costs of
living together has its advantages, but negotiating the complexities of joint
ownership can be tricky.
‘A solicitor can provide you with expert guidance on how
best to protect your legal rights.’
Waters & Co., Solicitors and Estate
Agents, of 81 High Street ,
Coleshill , B46 3AG
Teresa Waters,
Managing Partner, said many people believe that if they buy a home
together, they will automatically have rights to the property if they break up
or the other person dies, but this is not true in every case.
‘To help people better understand what is involved with
joint property ownership, we have compiled a list of the top ten things to be
aware of,’ Teresa said.
1. Think about how
you want to own the property - you can own the house or flat in equal or
unequal shares. How and why you do that may depend on your own circumstances
but it is best to be clear about how much of the property each of you will own
at the outset, otherwise it could be very difficult to work out what each of
you is entitled to if the relationship ends.
2. Inform your mortgage
lender - the names on the mortgage deed must match the names on the Land
Registry Entries so make sure your bank is kept informed of any changes. If you
want to change the names on the deeds you will need your lender's permission to
do this.
3. If one of you already owns the property check whose name is on the title at the
Land Registry - this may determine who has legal rights to the property if
the property is sold or the relationship breaks down.
4. Record who pays
for what - keep a record of payments made by each party to the property including
mortgage payments, household expenses and the cost of repairs, maintenance or
extensions. If there is a dispute over shares in the property, a court may take
these factors into account.
5. Do not forget
about initial deposits and other financial contributions - it can be
tempting to think 'we will just divide things up equally if we break up', but
it is important to give careful consideration to each party's contributions. If
one of you has put more money towards buying property, for example, by paying
the whole of the deposit, you may wish to reflect that in the size of their
share of the property or the money from selling it.
6. Discuss moving out
- if you are buying a property with a group of friends or family, give some
thought to what would happen if one of you wished to move out and how their
share would be transferred. In most cases someone moving out might mean the
property has to be sold.
7. Whatever you
decide, tell your solicitor - your solicitor will be able to advise on the
best way of documenting and protecting your interests in the property. This is
often by writing a Declaration of Trust.
Although it will cost money think of it like an insurance policy. You
pay a premium to compensate you if your house burns down and your possessions
are lost. In the same way, if you do not protect your contribution to the
property you may lose out.
8. Consider making a
will - however you own your property, you should consider making a will to
record who you want to inherit your share. Many people mistakenly think that if
they own a property jointly, their partner will automatically inherit their
share, but this is not always the case. Your solicitor can advise you about
wills.
9. Commercial
property - your solicitor can help you document your interest in a
commercial property through a partnership agreement or other company
agreements.
10. Get the best
advice - many solicitors with expertise in property buying are members of the Law Society's Convey ancing Quality Scheme. This is the quality mark for property legal experts, recognised
by the UK 's
biggest mortgage lenders. CQS gives you reassurance that you are in safe hands.
Waters & Co., underwent rigorous assessment by the Law Society in
order to secure CQS status, which marks the firm out as meeting high standards
in the residential conveyancing process.
For more information contact Teresa Waters or Amanda Murtagh
at Waters & Co., on 01675 463855 or email office@waterssolicitors.co.uk
or look at our website at www.waterssolicitors.co.uk.
For more information on the Law Society's Convey ancing Quality Scheme visit www.lawsociety.org.uk/cqs
May 2013
Waters & Co.
Solicitors and Estate Agents
01675 463855 / 467605
www.waterssolicitors.co.uk
www.waterssolicitors.co.uk
(authorised and regulated
by the Solicitors Regulation Authority - SRA 67055)
