Declarations of Trust & Loan Agreements
Today with the high property market prices it is essential that buyers are protected. Few can afford to buy their first home and often need financial support from their parents. Many people now choose to club together to buy their first house.
Work colleagues, friends and relations are now buying houses jointly.
- But what happens if the owners fall out?
- Someone dies?
- Or an owner wants to move and the others don’t?
The money given by a parent is to benefit just one of several owners, and the money is just a loan?
What about when the loan is made to one of an unmarried couple, who buy and then split up?
All these issues can be covered by a Declaration of Trust. Such documents can confirm what will happen in these types of situations. We particularly recommend putting a declaration in place when owners have contributed different amounts to the purchase, or are paying different amounts in upkeep or mortgage payments.
In cases where there is a family loan, we can draw up formal Loan Agreements.
If you are one of the following people:
- You own a property with someone else
- You are a buy to let investor
- You have made a loan to your children
- You have bought a property for a family member
You should ensure your interests are protected and your Will provision is up to date.
In buying property you are buying the most substantial asset you will ever own. Don’t be caught out by not wanting to be too formal!
We can put Declarations of Trust and Loan Agreements in place for you and your family. If you are about to buy please contact us. A Declaration can be made ready before completion.