If you are buying as a couple but only one person is paying the deposit, you would not automatically be entitled to the value of the deposit if you decide to sell. You will require a Declaration of Ownership which is a vital part of moving house. The first and most important thing would be to speak with one of our skilled conveyancers who will be happy to help you.
What is a Declaration of Ownership?
A Declaration of Ownership is a contract between co-owners that clearly sets out the parties’ intentions at the time of the purchase.
If a dispute ever arose in the future the Court would use the Declaration of Ownership as the starting point and there would need to be strong evidence to show that the position outlined had since been varied.
The importance of having a Will
When you buy a property jointly with another party it is important at the outset to think about how you would want the equity in the property to be split between you.
Not only will this have an effect on how your ownership will need to be registered, but this can also avoid difficult conversations and costly litigation down the line.
If you do not want to own the equity in the property equally, or you wish to leave your equity to someone other than your co-owner on your death, then you must hold the property as tenants in common.
By holding the property as tenants in common you can each specify your share in the equity and on your death, this will pass in accordance with the terms of your Will. It is therefore vital to also ensure that your Will is up to date.