The purpose of the Deed of Trust is to set out exactly who has a financial interest in the property and what their ‘stake’ in it is.
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If you a buying a property alongside someone else, you may wish to consider having a ‘Deed of Trust’ prepared. A Deed of Trust (also known as a ‘Declaration of Trust’) is a legal document that can be drawn up between two or more parties as part of a property purchase. The purpose of the Deed is to set out exactly who has a financial interest in the property and what their ‘stake’ in it is.
Most people buy properties together as ‘Joint Tenants’, which means they own the property together equally. This would mean that, should the property be sold in the future for any reason, then both owners would receive a 50/50 split of the sale proceeds. Depending on the circumstances of how the property was first purchased however, you may not feel that this is fair, and a Deed of Trust can help set out how the proceeds of a sale should be distributed.
The most common example of how a Deed of Trust can help is where two people purchase a property together, with one contributing more than the other. For example, if ‘Anna’ and ‘Adam’ purchased a property, but Anna provided £20,000 to the deposit, and Adam only £5,000, then a Deed of Trust could be prepared to ensure that Anna would receive a larger amount of the sale proceeds should the property ever be sold. A Deed of Trust is a very flexible document, and you can decide upon the terms of how you would like the money distributing. For example, you could have the Deed list specific amounts, saying that Anna would receive her £20,000 back and Adam his £5,000, with the remaining proceeds then being split 50/50. Alternatively the amounts could be expressed as percentages instead, saying that Anna was entitled to 80% of the entire sale proceeds and Adam 20%. Similarly, if Anna were to also contribute more to the mortgage payments, or pay for renovation work on the property, these costs could also be included within the Deed.
A Deed of Trust can also help where someone else has a financial interest in the property, other than the owners named on the deeds. If Anna’s parents had given her that £20,000 deposit for instance, then the Deed could protect their investment by saying they are entitled to £20,000 back should the property be sold. Without a Deed in place half of the £20,000 deposit would essentially be Adam’s.
In an alternative scenario, where Anna already owned the property, then met Adam and he eventually moved in, a Deed of Trust could also help protect Adam’s interests. As Adam wouldn’t be on the deeds to the property, he normally wouldn’t be entitled to anything at all should it be sold in the future. If he were to live there and start paying towards the mortgage, energy bills, redecorating, etc, then a Deed could be drawn up to reflect his financial contributions in the property.
A Deed of Trust ultimately offers protection and peace of mind for everyone involved when buying a property. Whilst you may be on excellent terms with your partner, family member, or friend today, relationship breakdowns can unfortunately happen in the future. Without having a legal document like a Deed of Trust in place, then anything you agree between yourselves is essentially just a verbal agreement, and not legally enforceable should the worst happen and disputes arise.
If you are planning on purchasing a property and have any queries about how a Deed of Trust may help in your circumstances, please do not hesitate to all us on Our conveyancing team are very familiar with preparing Deeds and would be more than happy to help in making sure your wishes are accurately reflected.
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The current market and national economy is so uncertain that people may choose to wait and indeed remove their risk by pulling out of the transaction. Although there is no reason not to carry on as normal in terms of the legal process we have to consider slower transaction times or hesitant investors or buyers.
You can withdraw from a sale or purchase up until the point contracts have been exchanged. Any deposits paid after exchange of contract will then by non-refundable. After contracts are exchanged you are then responsible for the property you are buying and should arrange suitable insurance from this date.
A local authority search completed for a house purchase is valid for 3 months.
We usually say 8-12 weeks for an average sale or purchase. Queries and concerns can often come out of the local authority searches which need further investigation and sometimes this leads to re-approval from the Mortgage lender. This can add further time into the process.
You can indemnify the work by taking out an insurance policy. This means that you can not be held liable for any future fault on the work that was done. We can arrange this for you
Stamp Duty is a tax levied by HM Government on a transfer of property. For residential single property ownership this tax is calculated at 5% for the portion of the property value between £250,001 and £925,000, 10% for the portion between £925,001 and £1,500,000 and 12% for the portion £1,500,001 and over. Duty may also be chargeable on any rental charge (leases only) - this affects both residential and commercial leases where different thresholds are applied. There are different rates for First time buyers and "second homes/buy to let".
Tenants is Common is where two or more people are entitled to the proceeds of sale in distinct shares - on the death of one, his/her interest will not pass to the survivor(s) but will be part of his/her estate. Joint Tenants are on the other hand 50/50 Co-owners of land - when one of them dies, his/her rights of ownership pass to the survivor(s).
Our expert team will handle the legal process as quickly and efficiently as possible.
We know that moving house is often a very busy and stressful time. This may leave you more susceptible to falling victim to property fraud. This guide outlines useful advice on what you can do to help protect yourself.
The restrictions on overseas travel has seen a race for UK holiday accommodation. Where property owners look to make money from ‘staycations’ by offering their homes on sharing platforms such as Airbnb, the ease of letting does not take away the responsibility to understand and keep up with relevant rules and regulations.
Recent government statistics have revealed that the Help to Buy ISA scheme is helping first-time buyers to get on the property ladder three years earlier than they otherwise would. The result has been calculated by looking at the average age of first-time buyers both with and without the ISAs. On average, those who use the ISA to buy their first home are three years younger than those who do not, with the median age of those using the Help to Buy ISA being 27.
It’s a troubling norm of today’s society that most people will have heard a horror story about property fraud from a family member, a colleague from work or simply reading online. Importantly, these stories need to be kept in perspective: remember, the tales of properties being rented and sold without any noteworthy problems are the ones people usually don’t bother sharing! However, it’s also worth taking heed of the negative experiences of others to ensure you do everything you can to avoid falling into similar traps.
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Recent official figures have revealed that homebuyers are being lent more money by banks than at any time since the global financial crisis a decade ago, with many of the borrowers being young people for whom stepping onto the property ladder is barely affordable. As such, billions of pounds of debt which may prove unsafe is being taken on by them at a time when interest rates are expected to rise.
Is it ever possible to get the keys to a new home without gaining a few grey hairs? Read on to find out how to make it as simple as possible.
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Moving to Chesterfield? Check out our Chesterfield Moving Guide for tips on how to turn your house into a home.
We have prepared an article compiling some key information breaking down the 3 stage process of buying a home on the help to buy scheme.
Download our free guide covering everything you need to know about the process of buying or selling a residential property.
Companies are within their rights to monitor the private online activities of their employees when they are in the office.
A woman recently won damages on behalf of her son for injuries sustained at his birth as a result of the alleged negligence of a consultant obstetrician and gynaecologist.
We’ve enlisted the help of some local relationship counsellors in Sheffield to provide you with some survival advice to help get you through a divorce.
Mr & Mrs B, MansfieldGreat service from start to finish. Josh kept us updated throughout the process and was always very prompt with responses. Highly recommended.
Mr & Mrs S, ChesterfieldWe opted to use Banner Jones for assistance with our property purchase. We found the team to be extremely professional and great with communication. All round impressed, would use again for other services. Thank You
Mr B & Ms R, Market WarsopCheryl gave an excellent service. Told us everything in detail. Good work, Cheryl.
Mr & Mrs B, ChesterfieldHouse moves are very stressful. First rate service. I was put at ease with everything and the way our move was handled. I would highly recomend Banner Jones.
Mrs S,SheffieldI received excellent service for the purchase of my house
Mr & Mrs H, MansfieldHollie was really great! What a great team, thank you very much!
Mr & Mrs C, HockleyHolly
Many thanks for all your help in making the sale /purchase of the above properties such a thoroughly smooth, stress free journey.
We can highly recommend your company .
Mr W, DerbyshireThanks very much Jenna. I have been very happy with Banner Jones's help in the sale of my home. Please pass on my thanks to Gemma. Best wishes.
Mr & Mrs J, Isle of WightHollie was excellent. They responded to all our enquires straight away and explained everything in great detail. Banner Jones offer a friendly and reliable service.
Mr & Mrs H, ChesterfieldThanks so much for all the hard work. Even though the chain wasn't without it's issues, we found you both to be swift in your responses and supportive to us as a family.
You'll be pleased to know we love our new home and have settled in brilliantly.
