Deed of trust?

emkate9

Hi everyone,

My partner and I are buying our first house together. We'd like the buy as tenants in common with instructions for him to get back his deposit/stamp duty contribution then the remainder to just be split 50/50. 

Our solicitors are saying we have to get a deed/declaration of trust. Now we know this is recommended but they've quoted £500+ for it whereas other places are £300. Could we get another solicitor to draw up the deed then send it to our conveyancer or do we have to go through our conveyancer? 

Does anyone have any experience with this? Thanks.

Thrugelmir

It's your declaration of trust. No need for the conveyancing solicitor to be involved at all. 

emkate9

Thrugelmir said:

It's your declaration of trust. No need for the conveyancing solicitor to be involved at all. 

Okay great, we'll take a look at some other places then. Thank you.

GDB2222

Is there any way for a copy of the deed to be lodged with the Land Registry? That way, you will know where to find it!

Have you told your solicitor that you think £500 is too much? 

getmore4less

The get you money back is just the same as the one providing the bigger portion of cash given a loan(interest free) of half the difference to the other person

Another way to set this up is to just go 50:50 and have a side loan agreement for the difference  independent of the property.

It can have payment terms that pay it off over time or just wait till property is sold.

Can be a good solution when the one with less cash can afford more from income they just pay off the loan

Much easier to understand and deal with than a deed of trust.


More important are the terms that decide when the place should be sold or terms of any buyout if things go wrong.

GoogleMeNow

Land Registry do not 'lodge' Deeds of Trust. 

The Land Registry will note that the property is held as Tenants in Common with a Form A Restriction on the title.  The Transfer (TR1) will state that the property is to be held in equal or unequal shares and is submitted to the Land Registry, but do not think this document is kept after the register has been updated. The original Deed of Trust (whoever you instruct to do it for you), will need to be held in safe keeping by yourselves.

youth_leader

I'm glad you bought this up, just about to approach my solicitor about this as I'll be giving my daughter a small deposit.  Will shop around! 

Thrugelmir

GDB2222 said:

Have you told your solicitor that you think £500 is too much? 

Ideally the full details need to be fully thought through before consulting the solicitor. Then the solicitors time is spent purely on the legal aspects. 

Out of the £500. A £100 is VAT.  Given the solicitor themselves may have a charge out rate of £200 per hour. Costs can soon mount. 

getmore4less

youth_leader said:

I'm glad you bought this up, just about to approach my solicitor about this as I'll be giving my daughter a small deposit.  Will shop around! 

if there is a mortgage as well not all lenders will like a part  loaned deposit

emkate9

getmore4less said:

The get you money back is just the same as the one providing the bigger portion of cash given a loan(interest free) of half the difference to the other person

Another way to set this up is to just go 50:50 and have a side loan agreement for the difference  independent of the property.

It can have payment terms that pay it off over time or just wait till property is sold.

Can be a good solution when the one with less cash can afford more from income they just pay off the loan

Much easier to understand and deal with than a deed of trust.


More important are the terms that decide when the place should be sold or terms of any buyout if things go wrong.

This is a good idea. Unfortunately in my case, my income isn't that high and the deposit was quite large so it'd probably take me a couple decades to pay half back!
From what I've read the deed of trust does cover things like sales/buyouts though as well the shares.

We've found an online place with good reviews that does it for a lot cheaper, I know cheap isn't always best but I'm thinking as we're not asking for anything complicated we just need someone to write a basic deed accurately. 

Chooru

How much are they charging you for everything else?!?!

Our Declaration of Trust cost us £110.