This can be a useful document as it is usually made at the time of the purchase of a property and sets out your intentions as to the sale proceeds before any disagreements arise although if all parties are in agreement a Declaration of Trust can be drawn up after the purchase has been made.
We may recommend that you have a declaration prepared:-
- If you are buying a property with another person but one of you is contributing a higher amount or perhaps all of the deposit for example:-
- You and your partner are buying the property for £100,000.00 and taking a mortgage.
- Your savings of £20,000.00 are being used as a deposit but your partner does not have any savings and you are jointly taking a mortgage for £80,000.00.
- A Declaration of Trust may state that on sale of the property, the mortgage is redeemed, the estate agent and legal fees are paid and then that the remainder of the money is split as follows;
- £20,000.00 to you
- The remainder of sale proceeds would then be split 50/50 between you and your partner.
- To protect a third party (e.g. a family member) who is contributing financially to the purchase but who will not be a legal owner of the property.
Whatever your reason for considering a Declaration, if you would like to discuss your options why not give AST Hampsons Property Law team a call on 01706 653322 (for our Rochdale Branch) or 0161 763 1000 (for our Bury Branch). You can also email us at [email protected]s.co.uk