Deed of Trust - Do I Need One?

sammo456

Hoping for some help and support from the forum on whether I require a 'Deed of Trust'. 

I am a first-time buyer, buying with my partner at a value of £285,000.00. 

Through my own savings I will be providing 90-95% of the 5% deposit towards the home, plus I have paid all solicitor fees, homebuyer reports etc (I've actually had to pay some of these twice!) and all other associated costs. I am starting to think pragmatically about protecting my savings in the worst-case scenario of a future break-up. 

It's an awful thing to consider, we're in a great, solid relationship of over 6 x years and this is an exciting time for us, but the amount I'll be putting in is a lifechanging amount of money and the only capital I've ever had for myself. My family are council tenants and I'm to be the first homeowner in the family - so I really need to protect what I've worked hard to save in addition to renting, should something happen in the future that can't be predicted.

We will be splitting the mortgage payments approximately 60/40 with me paying the greater share. 

In reality - all I want to protect is my initial deposit payment - everything else as it stands can be 50/50 in future as long as that level of contribution continues. Is a Deed of Trust really needed or is there another way to do this at all? I would trust my partners word implicitly but you cannot foresee the future and what decisions the involvement of family could lead to. 

It's something I'd never really considered but as I've spoken to friends and wider family their practicality has left me looking for further advice!

Thrugelmir

Deed of Trust provides you with the legal formal documentation in the event of dispute. Speak to your solicitor about having one drawn up. Sounds as if yours is straightforward if it's just the initial deposit. 

Philomel

A Deed of Trust isn't a stressful or particularly onerous thing - we paid a few hundred pounds to our solicitor to sort it out but considered it money well spent as it meant that there wouldn't be any risk of confusion or disagreements in future. It makes a lot of sense and it's good to discuss and prepare for the worst case scenario in advance rather than having to try and manage it after a break-up when you may no longer be on good terms. Of course, the issue might never arise and that would be great too but it's very sensible to cover your back. These are big sums of money.

canaldumidi

As above.

You need to purchase as Tenants In Common, not Joint Tenants.

Plus a Deed as advised above.

You should also each write a will specifying where your share would go in the event of death.

sammo456

Thanks for the comments. I'll speak to my solicitor for advice. I'm concerned about the impact of this with my partner who would likely respond that she'd honour that agreement anyway without formalities, but you just can never predict the future. 

Philomel

I was buying with someone I have known for 15 years and lived with for 5, we both trust each other or we wouldn't be buying together, but it is just good sense to formalise this stuff for everybody's peace of mind. I hope your partner understands! 

Richard_Webster

Yes, you should do wills and a deed of trust. 

However, please understand that if things really go pear shaped you have to factor in the cost of litigation about the matter.   You say "I am entitled to X because the deed of trust says so".   The other person says "I'll give you Y, and if you don't like it, take me to court."  So you have to compromise or spend a few thousand on legal costs.  

So, in the worst case situation, having a deed of trust is still worth it because it avoids further court arguments about what was agreed between you (which would happen if there was no such deed) and confines the argument to valuation of the share stipulated in the deed.

Snookie12cat

sammo456 said:

Hoping for some help and support from the forum on whether I require a 'Deed of Trust'. 

I am a first-time buyer, buying with my partner at a value of £285,000.00. 

Through my own savings I will be providing 90-95% of the 5% deposit towards the home, plus I have paid all solicitor fees, homebuyer reports etc (I've actually had to pay some of these twice!) and all other associated costs. I am starting to think pragmatically about protecting my savings in the worst-case scenario of a future break-up. 

It's an awful thing to consider, we're in a great, solid relationship of over 6 x years and this is an exciting time for us, but the amount I'll be putting in is a lifechanging amount of money and the only capital I've ever had for myself. My family are council tenants and I'm to be the first homeowner in the family - so I really need to protect what I've worked hard to save in addition to renting, should something happen in the future that can't be predicted.

We will be splitting the mortgage payments approximately 60/40 with me paying the greater share. 

In reality - all I want to protect is my initial deposit payment - everything else as it stands can be 50/50 in future as long as that level of contribution continues. Is a Deed of Trust really needed or is there another way to do this at all? I would trust my partners word implicitly but you cannot foresee the future and what decisions the involvement of family could lead to. 

It's something I'd never really considered but as I've spoken to friends and wider family their practicality has left me looking for further advice!

Get  a deed of trust and sign for tenants in common on the land registry. The whole point is to protect yourself in case something should happen in the future and its worth getting it. Your partner should understand. Everyone says they wouldnt do this, but no one can predict the future.