Why a Deed of Trust is crucial for young couples starting on the housing ladder

by EdwardHandsandLewis on April 25, 2013

With the Government’s new initiatives on helping young couples start on the housing ladder, and the trend towards sharing the cost of mortgages with family or partners, it is becoming increasingly important to document what should happen if it all goes wrong.

 

  • Did one partner provide the deposit, if so should they get that back first if the property is sold?
  • Is one partner paying more of the mortgage than the other, if so should they get a bigger share of sale proceeds?
  • What happens if one partner moves out or wants to sell, can they force the other party to do this?
  • Should the partner left in occupation pay rent?
Douglas Wemyss of Edward Hands and Lewis Solicitors

If these issues have been agreed in advance then when a crisis occurs it makes it infinitely easier to resolve. Such agreements are usually referred to as Deeds of Trust by lawyers, and if requested a Solicitor will usually be happy to draw one up when the purchase of a property is being dealt with.

In the absence of agreement the parties will inevitably have a different recollection of what they thought they agreed.

The Court can be asked to adjudicate under the Trusts of Land and Appointment of Trustees Act 1996 (commonly known as TOLATA) however the process can be slow and expensive so if there are only a modest amount of sale proceeds they could all be wasted.

The moral of the story is to make sure whatever you agree is in writing at the time you purchase.

If you’re about to buy a house with a partner or family or would like to know more about Deeds of Trust call Douglas Wemyss today on 0116 2665394.

Keep up to date with our daily blogs through the Edward Hands & Lewis mobile app, just search Edward Hands on the iPhone or Android store to download our app for free’

EdwardHandsandLewis
www.ehlsolicitors.co.uk Edward Hands & Lewis is a firm that has evolved over time with a commitment to its core values. We have never forgotten that we are here because of our clients who have supported us over many years. We are proud to be at the heart of the communities in which we serve and we are equally proud of the team that we have to provide such service. We aim to provide value for money with a commitment to good, clear and concise advice. We take the time to ensure that our advice and assistance matches your goals. Unlike many professional services organisations, brevity and helpfulness are our watchwords. The agile and creative minds of the people we employ equip them to advise the same client on a diverse range of matters. This multi-specialism makes our lawyers and advisors expert on a range of the legal and other issues affecting their clients’ business. The strength and depth of our client relationships avoids wasted time and cost: it enables us to keep up to speed on business and sectoral developments and there is no need to field large teams of experts as a matter of course. While we have been established for many years, we pride ourselves on forward-thinking and believe we have achieved the right blend between traditional and modern. Whether you are an existing client of ours, are about to become a client or are looking to join us, we sincerely hope that your experience is a positive one.
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