Cheapest way to do a Declaration of Trust?

pootleflump

In the process of buying a house as tenants in common and have to do a Declaration of Trust. My solicitor has quoted £350 plus VAT, which is more than I was expecting.

Just wondered if anyone has used an online solicitor for this, and if so, any recommendations would be welcome, please.

Tom99

These quote £180 but I used a solicitor for mine:

https://www.deedoftrust.co.uk/

pootleflump

Thanks Tom. That's more like how much I was expecting to pay. It would be more than double to go with my solicitor - can it really be worth it, I wonder?

Tom99

[FONT=Verdana, sans-serif]Whoever you use to draw up the DOT you will need to tell them how you want the proceeds of a future sale split between you.

[/FONT] [FONT=Verdana, sans-serif]In a typical situation where the partners are putting in unequal deposits a two part formula is needed, its not just a split A=x% B=y%.

[/FONT] [FONT=Verdana, sans-serif]In such situations where the mortgage is split 50/50 then the DOT may provide for the partner who bought more equity, with their greater deposit, to get that back 1st before the rest is split 50/50.[/FONT]

crystalpinks

That quote seems a hell of a lot! We are having one drawn up at the moment as part of our purchase and solicitor has said he won!!!8217;t charge any extra for this... I!!!8217;m no expert but i certainly got the impression they have a template and just input the names/amount- like a 5minute job!

Thrugelmir

crystalpinks wrote: »

i certainly got the impression they have a template and just input the names/amount- like a 5minute job!

DOT's should be drawn up to cover the precise circumstances and wishes. Not always straightforward.

Tom99

crystalpinks wrote: »

That quote seems a hell of a lot! We are having one drawn up at the moment as part of our purchase and solicitor has said he won!!!8217;t charge any extra for this... I!!!8217;m no expert but i certainly got the impression they have a template and just input the names/amount- like a 5minute job!

[FONT=Verdana, sans-serif]If the property is being bought outright with no mortgage and the DOT is just reflecting the fact A paid more than B; then it can be quite simple e.g. a straight 60%/40% ownership.

[/FONT] [FONT=Verdana, sans-serif]However where a mortgage is involved and with the added complication of unequal deposits a more complex two or three part formula is usually required.

[/FONT] [FONT=Verdana, sans-serif]In order to test whether the formula you are using is correct imagine three situations and see if the formula used will correctly share out the net sale proceeds if you sold:

[/FONT]

• [FONT=Verdana, sans-serif]1 week later with no house value growth and no mortgage yet repaid[/FONT]
• [FONT=Verdana, sans-serif]5 years later when some of the mortgage had been repaid and the house is now worth 20% more than was paid for it[/FONT]
• [FONT=Verdana, sans-serif]20 years later when the mortgage has been paid off and the house is worth double what was paid.[/FONT]

anselld

pootleflump wrote: »

In the process of buying a house as tenants in common and have to do a Declaration of Trust. My solicitor has quoted £350 plus VAT, which is more than I was expecting.

Just wondered if anyone has used an online solicitor for this, and if so, any recommendations would be welcome, please.

Depends what you are trying to achieve. If it is simply to record unequal ownership percentages this can be recorded in section 10 of the TR1 form without the need for any separate DoT at all.

Why have you decided you have to have one?