Co-Ownership

According to research from National Savings & Investments, it takes first-time buyers a year longer to save for a house deposit than it did a decade ago. It is no surprise, therefore, that at least one in 10 first time buyers do so with a friend. Co-ownership means sharing the costs, allowing you to buy a nicer property.

Objectively, be realistic on whether or not you can actually live with your intended co-borrowers and the vicissitudes of living together for perhaps several years. Two or more unrelated people sharing a property will need more space than a couple, such as more than one reception room can make a lot of difference in allowing more privacy.

A sensible measure –and as a safety net for the worst eventualities – we would recommend a written legal document, such as a Deed of Trust, be created. This sets out in black and white exactly what should happen if the parties separate from the arrangement or should one of them die. The Deed of Trust can be drawn up at the same time as the title is registered when the property is bought and, like the deeds themselves, is a legally binding document.

Not all lenders will give loans if more than two people are sharing, but at mortgagesplease we can point you in the right direction and negotiate with the most promising lenders.