Can someone please explain a deed of trust

gemstars

Hi,

I've seen this mentioned a couple of times in other posts. Can someone please explain to me what this is?

My partner and I are buying together. I'm putting up the deposit (£12,000) and we're getting a mortgage for the rest (£68,000) and making the payments equally.

We were thinking of putting something together saying that if we do split up I'll get my £12,000 back and then we'll split the rest 50/50. We were just going to write something up ourselves, would it be better to get the solicitor to do it? and if so, is it a deed of trust I want?

Second thing while I'm around the subject. What does everyone think of joint bank accounts for bills? We're not married and he was going to just give me half of the money for things and I'd pay them from my bank account as then we're not having to manage a third account. On the other hand would having a joint account be better? Make things clearer etc?

clutton_2

having a joint account is by far the best way in my view - i suggest that you do an annual spreadsheet of all your monthly bills and create an average and the each pay half of that annual average into the account each month on the same day. Start the account wiht the same amount as your m ost expensive month, then you wont go overdrawn.

you really need a solicitor to draw up this contract between the two of you to protect your deposit monies

Richard_Webster

What is going to happen if the property eventually sells for less than £80K or less than £68K. How is the loss to be handled? You need to think all that through between you. It can be the test of a relationship. One person wants it set down in black and white the other thinks it will sort itself out in the end and "Why do you want it all written down? Don't you trust me?"

As a solicitor I have to advise people to have these agreements. A lot of people don't bother because they beleive they can work it out between them. Very often they do and I often end up acting for one of a couple who has done an amicable deal to buy the other out for £X, but it doesn't always turn out that way.

Couples that have not made the commitment of marriage should think very carefully about buying a property together. Do they want to be committed to each other or don't they? If they are committed then what has £12K got to do with anything? OK, I know lots of marriages do fail, but isn' t it a good idea to consdier the commitment to each other first?

Anyway, OP has to be prepared to kiss goodbye to her £12K or some of it if the house goes down in value. She could have a trust deed which says that he has to pay her half of the loss, but where is he going to get the money from? He will just say he hasn't got it and what is she going to do about it? So in the real world such a trust deed only really deals with what happens if there is a "profit" in which case OP makes sure she gets the 1st £12K.

bdl1brick

You can get a deed of trust online which allows for 12k to come to you after the mortgage is paid off prior to the remaining proceeds, if any, being split 50/50.

You should be able to get this done by your conveyancing solicitor but both parties will need legal advice from separate solicitors before signing to make it enforceable.