Co-buying? Then make sure to sign a Deed of Trust.

With first-time buyer deposits at an all time high, more and more people are
considering co-buying. That’s because co-buying brings the obvious advantage of
pooled resources, enabling you to buy straightaway rather than waiting several
years until you’ve saved enough to buy alone. But whether you’re buying with a
friend, family member or a property mate that you’ve met through a specialist
site like www.propertymates.co.uk - co-buyers should be sure to draw up a Deed
of Trust to protect themselves.

The prospect of being a homeowner is exciting, but first you need to think ahead
and work out an exit strategy for that time when one of you wants to move on. A
Deed of Trust covers all those ‘what if’ scenarios. It’s a legally binding document
that spells out individual share of ownership and what happens should one of
you meets a new partner and decides to move out. We recommend that you take
separate legal advice.

Points for considerations:

• Co-owners are jointly and severally liable for the mortgage. This means

that if you can’t pay your share, then your co-buyers are responsible for
not only their own share of the mortgage but yours too.

• It’s normal for co-owners to have the option to buy out the other’s share.

With this in mind, you need to have preset conditions as to how the
property will be valued. One possible solution is to take the average of
three estate agent’s valuations.

• Most couples buy as joint owners, meaning they both own the whole

property. Co-buyers should buy as tenants in common which states the
individual share of ownership.

• The advantage of being tenants in common is that you can will your share

to a member of your family rather than it going to the co-owners.

For more information about co-buying visit www.propertymates.co.uk