Protecting your investment

Buying a house, or helping a loved one do so, is likely to be the biggest purchase you will make during your lifetime. Often, if you are buying with a partner or spouse, one party may have more available cash to put towards the deposit or purchase price. The difference in contribution can add up to a substantial amount of money, especially with increases in property prices.

So how can you protect your investment?

A Declaration of Trust is a legal document that confirms the actual beneficial ownership in a property and sets out the financial arrangements that the parties have agreed. For example, it could be agreed that you are entitled to receive 20% of the value of your grandchild’s property when it is sold as you provided them with the deposit. In such a scenario, without a Declaration of Trust, you would be left with the burden of establishing your interest in the property.

Whilst formally declaring that you are entitled to more of the beneficial interest of your house, or are indeed beneficially entitled to a share in a loved one’s property, appears unromantic, we recommend that it is considered in order to prevent issues arising in the future.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.