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Deed of Trust

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Rawkus
Rawkus Posts: 2 Newbie
in House buying, renting & selling
Hi, new member here.

I'm just in the process of completing a house purchase (my first!) and the topic of a deed of trust came up and I'm not sure what to do.

I will be living in the house with my long term fiance but the the mortgage is in my name solely and the deposit is all mine. I wanted to secure the deposit in my name in case anything happened to our relationship and my solicitor recommended a deed of trust. He also asked how we'd like to apportion the remainder of the property and I wasn't sure. I discussed it with my SO and she was happy for me to put it all in my name. We discussed buying the property together but she didn't want to (and she already owns a buy to let). Should I just put the deed solely in my name? It feels a bit like taking advantage even if it's what we agreed.

We plan to get married at some point after moving in so will likely render all this moot but for the interim I need to decide :question:

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  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    Rawkus wrote: »
    Hi, new member here.

    I'm just in the process of completing a house purchase (my first!) and the topic of a deed of trust came up and I'm not sure what to do.

    I will be living in the house with my long term fiance but the the mortgage is in my name solely and the deposit is all mine. I wanted to secure the deposit in my name in case anything happened to our relationship and my solicitor recommended a deed of trust. He also asked how we'd like to apportion the remainder of the property and I wasn't sure. I discussed it with my SO and she was happy for me to put it all in my name. We discussed buying the property together but she didn't want to (and she already owns a buy to let). Should I just put the deed solely in my name? It feels a bit like taking advantage even if it's what we agreed.

    We plan to get married at some point after moving in so will likely render all this moot but for the interim I need to decide :question:

    If the mortgage is solely in your name it's highly unlikely the lender would allow anyone else's name on the deeds anyway.

    Who will be paying the mortgage? If both of you is the mortgage lender aware of this?
  • G_M
    G_M Posts: 51,977 Forumite
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    If you buy jointly,

    1) you'll pay an xtra 3% SDLT as she already owns a property so this will be her 2nd.
    2) you can own as Joint tenants or Tenants in Common. Read the difference here.
    3) If tenants in common, you'll need a Deed apportioning ownership, and setting out "what happens if...."
    4)she will almost certainly have to also go on the mortgage

    If the property (and mortgage) are in your sole name, none of the above apply. However, she may obtain some beneficial ownershhip rights, especially if she contributes financially to the property, so a Deed would be wise to protect your interests.


    If you marry, all bets are off.
  • Rawkus
    Rawkus Posts: 2 Newbie
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    Thanks for the replies. To clarify we are only discussing becoming Tennants in common and will be drafting up a deed of trust it's just a question of whether I should just protect my deposit or for the full value. She will not be going on the mortgage.

    It's just to cover the possibility that we break up and whether she'd have a claim to the property and deposit (which I understand she would without the deed of trust).
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    Rawkus wrote: »
    Thanks for the replies. To clarify we are only discussing becoming Tennants in common and will be drafting up a deed of trust it's just a question of whether I should just protect my deposit or for the full value. She will not be going on the mortgage.

    It's just to cover the possibility that we break up and whether she'd have a claim to the property and deposit (which I understand she would without the deed of trust).

    ??? :huh:

    If you are buying the property solely your name using a mortgage which is solely in your name then you cannot own the property as tenants in common. You will be the sole owner of the property therefore there is no need to protect your deposit because you will be the only owner.

    It is possible to have a mortgage just in your name but with two people named on the deeds (I think only HSBC offer this) but that is not the scenario you are describing.
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    edited 21 June 2018 at 3:47PM
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    [FONT=Verdana, sans-serif]If you are both going to be owners of the property, which almost certainly means your partner will be a party to the mortgage, even if they don't contribute to it, then you need a deed of trust.[/FONT]
    [FONT=Verdana, sans-serif]If you are buying the property solely in your name and your partner is moving in with you then you need a cohabitation agreement not a deed of trust.[/FONT]

    [FONT=Verdana, sans-serif]Which is it?[/FONT]

    [FONT=Verdana, sans-serif]If you confirm the above people will be better placed to advise you.[/FONT]
    [FONT=Verdana, sans-serif]
    [/FONT]
  • G_M
    G_M Posts: 51,977 Forumite
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    edited 22 June 2018 at 11:55AM
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    Rawkus wrote: »
    Thanks for the replies. To clarify we are only discussing becoming Tennants in common and will be drafting up a deed of trust.
    But earlier you said:
    We discussed buying the property together but she didn't want to
    IS THE PROPERTY GOING TO BE IN YOUR SOLE NAME, or
    IS IT GOING TO BE IN BOTH YOUR NAMES?


    If both names, then you'll (almost certainly) both have to be on the mortgage too.


    And if both names, then will you own as Joint tenants or Tenants in Common?


    Please clarify.
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