Do I need a Declaration/Deed of Trust?

CHlHlRO

I’ve just been going through the bumf the conveyancing solicitor sent to us before sending the pack back and it mentions that if one party has stumped up more of a deposit that the other to consider a Declaration of Trust. Simply put, the deposit is 40% of the house value and comes entirely from me. Myself and my husband would be jointly and equally responsible for the mortgage on the rest. The bumf seems to suggest that, if we were to split, I’d get my deposit back then half the proceeds of what was left from the sale. Is that right? Do I actually need that in writing? The fee of £275 the conveyancer has quoted seems fair based on a brief look around the forum but I’m not sure it’s needed since we’d be TIC anyway and the share would be roughly 70/30 based on me stumping up all of the deposit.

Or have I got it all wrapped round my head?

Tom99

[FONT=Verdana, sans-serif]If you want to try and protect the 40% of the property you have bought then you need a deed of trust.

[/FONT] [FONT=Verdana, sans-serif]Its not as simple as just saying you will own it 70/30. For example if you sold on day 2 you would not split the net proceeds 70/30 since your husbands share would be worth nothing.

[/FONT] [FONT=Verdana, sans-serif]You need a two part formula.

[/FONT] [FONT=Verdana, sans-serif]Since you are married if you divorce all your joint assents go into the pot so your deed of trust will not necessarily protect your interest.

[/FONT] [FONT=Verdana, sans-serif]You need a deed of trust which will say something like this:

[/FONT] “[FONT=Courier New, monospace][FONT=Verdana, sans-serif]NOW THIS DEED WITNESSES as follows:[/FONT][/FONT]
[FONT=Verdana, sans-serif] The parties hereto declare that they hold the Property on a trust of land to the parties herewith DELCARE that they hold the property and the proceeds of sale (after discharging the mortgage and deducting there-from the costs of sale) and the net rents and profits until sale UPON TRUST for themselves as Tenants in Common[/FONT]
[FONT=Verdana, sans-serif] (a) as to 40% of the gross sale price of the Property less costs and fees for [/FONT]
[FONT=Verdana, sans-serif]Partner A absolutely together with half of the remainder and[/FONT]
[FONT=Courier New, monospace][FONT=Verdana, sans-serif] (b) as to half of the remainder as above for Partner B absolutely[/FONT][FONT=Verdana, sans-serif]”

[/FONT][/FONT] [FONT=Verdana, sans-serif]That way, on a sale, you will get back 40% which is what you deposit bought and everything else is shared 50/50.

[/FONT] [FONT=Verdana, sans-serif]You can't register the deeds of trust as such with the Land Reg Title but their existence can be protected on the register by way of a restriction.[/FONT]