Finally, you have come up with a way to buy a house! After much thought you have decided to buy with a friend, the loan is agreed, and you’ve found the property.
So everything is great, why should you worry?
When buying with the friend it is essential that you not only make a Will, but also that you come to a formal legal agreement to allow for the following:
• Exactly what shares you each have in the property (as it is likely that the amounts you each put in may be different).
• How any profits would be divided on any future sale.
• Allow for a formula to buy each other out, should one of you want out.
• Decide how the bills etc are to be split.
• What will happen on the death of one of you.
• If funds are coming from various sources, how these are to be paid back.
These are just some of the things that MUST go into a formal declaration which should be signed by all the buyers. Such agreements will prevent lengthy (and costs) legal arguments later!
So if you are about to buy with a friend, or you are a parent helping a child buy. Give me a call.