Purchasing property jointly with unequal deposit contributions

Recent statistics show that a third of couples who purchase properties jointly with unequal deposit contributions fail to take the appropriate steps to protect their differing contributions. Many individuals will not raise the issue with their partner for fear of upsetting them or damaging trust. However, without appropriately addressing the issue, an individual who has contributed more to the purchase of the property will have no guarantee of recouping their fair share should the relationship breakdown.

The issue is becoming more prevalent with first time buyers increasingly sourcing deposits from multiple sources (e.g. gifts and loans from family, Help to Buy ISAs, Help to Buy shared equity arrangements). It is estimated that just 30% of first time buyers provide a deposit entirely from their own funds.

At Ungoed-Thomas & King, we sensitively address this issue with all of our clients who are jointly purchasing a property and can prepare an appropriate Declaration of Trust to reflect both individuals’ interests. As a matter of course, we would record the contents of the Declaration of Trust against the title register; this will prevent the parties selling the property without complying with the provisions of the Declaration of Trust

For informed and comprehensive advice on any aspects of buying or selling a property, please contact our experienced Property Team on 01267 237441.