Declaration of Trust (Deed of Trust)

A Declaration of Trust is a legally binding agreement which records the financial arrangement between owners. It can set out who put in what and who pays for things such as the mortgage, bills, home improvement and costs and how the proceeds will be divided upon sale.

When should I make a Declaration of Trust?

You should consider making a Declaration of Trust if you are buying a property with another person and, for example:

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You are not married or in a civil partnership

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You are buying with friends or relatives

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You are helping someone else buy a property, such as your children

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You own a property and wish to add another as a legal owner without updating the legal title at the Land Registry

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You own the property as a trustee of a trust

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You wish to alter the way the property is owned for tax planning purposes

You should also consider making a Declaration of Trust if you hold a property in your sole name, but someone else has a financial interest in it and this needs to be recorded, for example, they have paid a lump sum, paid for an extension or have started to contribute towards the mortgage.

The Declaration of Trust can clarify things such as:

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The percentage of the deposit each person paid

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The percentage of the property each person will own

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How much each owner will contribute towards mortgage payments

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How much each owner will contribute towards fees

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What happens in the event of a relationship breakdown

Please contact us for a no obligation discussion if you would like more information or to discuss your particular situation.