Declaration of trust

clearing_out_my_pockets

I'm not sure if this is the right forum for this, but hopefully some of you might be able to help anyway.

I am a first time buyer with no intention of moving until next year. I am clearing debts and saving for a deposit whilst living with my parents. My OH is clearing debts and putting money to one side either to use as a deposit or to overpay his loan in one lump sum.

My parents have (very kindly) offered £10,000 as a long term loan / gift. OH's parents have offered £3,000.

In a year's time (if OH keeps savings rather than pays off the loan), the finances will be as follows:

Me: £19,400
My parents: £10,000
OH: £3,600
OH parents: £3,000
Total: £36,000

As there is a large chunk coming from my parents, they would like a way to safeguard their investment. For example, if OH & I were to split up, theoretically the equity would normally be split 50/50 and without anything in writing, I'd be paying my parents back out of my equity. I know it's very easy for OH to say that he'd be honest enough to acknowledge my parents' contribution but it's difficult to guess how you would react in a hypothetical split :rotfl:

Anyway, do any of you fine people know how difficult it can be to get a declaration of trust and can you normally get your conveyancing solicitor to do it for you? For the avoidance of doubt, we wouldn't list everyone, we'd probably just say something like "Clearing out my pockets: £29,400 OH: £6,600"

reck_uk

Hi, I did this when I moved in with my girlfriend. I already had a house that I sold and could use the money for the deposit for our new house while she only had 10K in savings. We had a declaration of trust drawn up that said if we split and sold the house I would get what I put in, she would get what she put in and anything left would be split 50/50. It was very easy to setup and the same solicitor did it that sorted out the buying of the house. It’s not the most romantic thing to do and to be honest I didn’t like it. But you never know what the future holds and it’s just splitting the money fairly at the end of the day so I would recommend it.

Robert_Sterling_3

You did not drive a hard bargain on the contrary you made a generous arrangement in my opinion. :T :T :T

clearing_out_my_pockets

reck_uk - I know what you mean about not liking it, after all if there was trust, why do you need a declaration of trust:rotfl:

dimbo61

Depending on your income and the price you are paying for your home you could have an offset mortgage where your parents and the OH parents have offset accounts tied to your offset mortgage !
Just an idea but worth checking out (Yorkshire building society offset plus !!)