It is now more common for parties purchasing property to be contributing unequally to the purchase price and ongoing responsibilities in respect of the property and therefore want to record this and set out who receives money on a future sale of the property.
We can advise you on the difference between legal and beneficial ownership of a property and draft agreements to reflect your individual circumstances.
Many individuals do not realise that there are 2 different levels of ownership of property. Legal title ownership sets out the names in which a property is stated to be owned and these are the names recorded at the Land Registry. The beneficial title can be owned by the same people or completely different people and can be in unequal shares.
We can advise you on the most suitable form of joint ownership for your circumstances either as joint tenants or tenants in common in equal/unequal shares.
If your situation is a little more complex then we may recommend to you that a Declaration of Trust is the most suitable way to record the arrangements between you. Examples of situations where trust declarations are of essential are where one party is contributing substantially more or all of the deposit funds, the deposit is being funded as a gift from one of the parties families, one party will be paying all outgoings or also where one party may be living in the property and the other not.
Where property is owned as tenants in common or on the basis of a declaration of trust then it is also essential that you deal with your share in the property in your Will to stipulate what happens should you pass away.
There will be tax considerations for Stamp Duty Land Tax, if the property is England, or Land Transaction Tax, if the property is in Wales on whether other property is owned by a beneficiary.
You may consider that a cohabitation agreement suits your circumstances best and our family team have experts who can draft an agreement for you.
At Myerson, we have solicitors who are able to advise you in a friendly manner on the various options open to you.