Buying A House Together - Deed of Trust?

sassyblue

Savvy Sue you are correct it’s what I was just going to say. His lawyers will draw the Deed up and her lawyers will only go through it and make sure it’s all correctly worded as per OP says it should be, then they will witness her signature.  If all is correct and amendments are minimal, her lawyers fees will be a lot less than his.

really glad to se you are doing this, there are so many threads on here where people haven’t don’t this and it’s come back to haunt them. Good luck for your future OP.

Natbag

sassyblue said:

Savvy Sue you are correct it’s what I was just going to say. His lawyers will draw the Deed up and her lawyers will only go through it and make sure it’s all correctly worded as per OP says it should be, then they will witness her signature.  If all is correct and amendments are minimal, her lawyers fees will be a lot less than his.

really glad to se you are doing this, there are so many threads on here where people haven’t don’t this and it’s come back to haunt them. Good luck for your future OP.

We've both been bitten in previous relationships, so we both wanted to have something solid in place to protect ourselves.
We'll also be getting wills as well, and trying to cover every eventuality. Luckily we are both fair and everything has been easily agreed so far.
Thank you sassyblue and Savvy Sue - those replies have been really helpful  

Endstation

I would 100% avoid a deed of trust, me and my girlfriend at the time (married now) got one when we moved into our house and it's been nothing but a pain when we tried to remortgage. So we went to a solicitor to get it removed, had letters of agreement from all parties (as some parents money was involved) which all required separate blood sucking solicitors to the cost of £1000+ in total - since they all phone each other and charge a silly amount per minute.

Only for the @Land_Registry to decide on their own that it wasn't in the best interest for my Fiancé at that point to have it removed. Never got the money back and still stuck with this deed of trust. Solicitor seemed surprised the LR could do that, I still have no idea to this day but he seemed useless also. 

Will have to go through it all again at next remortgage and hopefully now we're married it will be enough. Absolute joke you can spend all that money, get agreement from all parties and then someone in the local LR office decides no. Probably someone I had an arguement in school with for all I know since no reason or anything was never passed along to us other than the above.

Endstation

Can't seem to edit: I don't post here much as you can see, meant that we had to stay with our current provider and not get a better mortgage deal, when we were sold this deed of trust by yet another solicitor none of these future possible problems, or charges getting it removed were mentioned. Worth asking about.

Ours was arranged by our solicitor handling the house purchase, but this is about 7 or 8 years ago now.

Natbag

Endstation said:

Can't seem to edit: I don't post here much as you can see, meant that we had to stay with our current provider and not get a better mortgage deal, when we were sold this deed of trust by yet another solicitor none of these future possible problems, or charges getting it removed were mentioned. Worth asking about.

Ours was arranged by our solicitor handling the house purchase, but this is about 7 or 8 years ago now.

Oh yikes, thank you for sharing, I would never have thought of that. I'm not too fussed but my partner wants to protect his larger equity share given how his ex behaved when they split, which I get, but we would be looking to remortgage as often as required to get the best deal possible. I'll share this with him and see what he thinks.

gettingtheresometime

Endstation said:

I would 100% avoid a deed of trust, me and my girlfriend at the time (married now) got one when we moved into our house and it's been nothing but a pain when we tried to remortgage. So we went to a solicitor to get it removed, had letters of agreement from all parties (as some parents money was involved) which all required separate blood sucking solicitors to the cost of £1000+ in total - since they all phone each other and charge a silly amount per minute.

Only for the @Land_Registry to decide on their own that it wasn't in the best interest for my Fiancé at that point to have it removed. Never got the money back and still stuck with this deed of trust. Solicitor seemed surprised the LR could do that, I still have no idea to this day but he seemed useless also. 

Will have to go through it all again at next remortgage and hopefully now we're married it will be enough. Absolute joke you can spend all that money, get agreement from all parties and then someone in the local LR office decides no. Probably someone I had an arguement in school with for all I know since no reason or anything was never passed along to us other than the above.

I don't know much about these things but I always thought a DOT was basically a document that set out how equity would be divided in the event of a split so I'm a little confused (and curious) as to why the LR would even get involved? 
I'm also curious as to why DOTs tend to state that the nominal amount would be returned to each party before the remaining equity is split - wouldn't it be better to return whatever percentage of equity that the amount has bought.

Natbag

Ours was meant to be very straight forward - we both get back the exact deposit amount we put in as a fixed amount in £, and then any equity left would be split 50/50 after all fees are paid. We'll both be paying half of the mortgage and bills, and this seems the fairest way of protecting our individual wealth now and our shared interest in the property we are buying. We aren't receiving any gifts of money, it's just our own capital. It does seem odd that the LR would be involved in a remortgage, but I don't really know the process.

Land_Registry

HMLR ‘only get involved’ on two levels. The first will always happen on a remortgage as a lender will secure the loan against the registered title. 

The second is IF you decide to apply for a restriction to protect the DoT you have entered into. You don’t have to but if you do then you usually apply for what is known as a form A restriction. This can be applied for when your beneficial ownerships have been split in this way, namely through your DoT. 

A form A restriction only restricts a sole registered owner so won’t impact in future if you are both involved in say a sale or remortgage.
endstation’s scenario reads as if they went further and had more than just a form A restriction in play - quite likely if others had an interest. I’m surprised we had any say in what the fiancee’s best interests were but OP doesn’t appear to have that same level of involvement as just two of them and a DoT/2way split. 

getmore4less

Natbag said:

Ours was meant to be very straight forward - we both get back the exact deposit amount we put in as a fixed amount in £, and then any equity left would be split 50/50 after all fees are paid. We'll both be paying half of the mortgage and bills, and this seems the fairest way of protecting our individual wealth now and our shared interest in the property we are buying. We aren't receiving any gifts of money, it's just our own capital. It does seem odd that the LR would be involved in a remortgage, but I don't really know the process.

With the get your deposits back a simple loan document for 1/2 the difference does the same job as that is what it is a loan by the big deposit to the small deposit to even things up.

No need to deal with the Land reg for  DOT or loan agreements,  as has been found is counter productive.
(BIg loans may be better with a charge)

For a property with a mortgage there really should be no 3rd party on the DOT dealing with the purchase.

getmore4less

gettingtheresometime said:

Endstation said:

I would 100% avoid a deed of trust, me and my girlfriend at the time (married now) got one when we moved into our house and it's been nothing but a pain when we tried to remortgage. So we went to a solicitor to get it removed, had letters of agreement from all parties (as some parents money was involved) which all required separate blood sucking solicitors to the cost of £1000+ in total - since they all phone each other and charge a silly amount per minute.

Only for the @Land_Registry to decide on their own that it wasn't in the best interest for my Fiancé at that point to have it removed. Never got the money back and still stuck with this deed of trust. Solicitor seemed surprised the LR could do that, I still have no idea to this day but he seemed useless also. 

Will have to go through it all again at next remortgage and hopefully now we're married it will be enough. Absolute joke you can spend all that money, get agreement from all parties and then someone in the local LR office decides no. Probably someone I had an arguement in school with for all I know since no reason or anything was never passed along to us other than the above.

I don't know much about these things but I always thought a DOT was basically a document that set out how equity would be divided in the event of a split so I'm a little confused (and curious) as to why the LR would even get involved? 
I'm also curious as to why DOTs tend to state that the nominal amount would be returned to each party before the remaining equity is split - wouldn't it be better to return whatever percentage of equity that the amount has bought.

get your money back is quite a common way to do it, it does have issues for certain combinations of numbers and price changes as the amounts can vary quite a bit from a more equitable based approach that works for all combinations of deposits mortage and price changes.

The former is a lot easier for some to understand  so they go with that.