These days buying a property on your own is less common. Property prices can be quite daunting and affording the first home can be difficult for first time buyers. Many people are now teaming up with friends and family to buy their first home.
Buying with a friend means that you will be able to share the deposit, mortgage payments, bills and the burden of any interest rate rises.
As joint owners you will become either tenants in common or joint tenants. It is important that you take good legal advice as it is best to be tenants in common unless you are a married couple and draw up wills to ensure that in the event of a joint owner’s death, the share is not passed onto the other co-owner.
You will need to have a declaration of trust or trust deed which sets out your ownership shares at the outset.
So that you know what path you have agreed to take in the event of any changes in personal circumstances, a co-habitation agreement should be drawn up. This can be very simple or complicated but should always set out how the equity and costs should be split when you come to sell – hopefully to buy a place of your own.
Contributed by Helen Adams, Managing Director of www.FirstRungNow.com
See Also: Help for First Time Buyers (0)