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Questions you might be asking?


Below are a few questions you might be asking yourself. The answers have been prepared by Mogers Solicitors.

What do I have to do to buy a house with someone?

Find someone compatible to buy with - particularly if you are going to be living in the property together (you may not appreciate living with an elephant trainer who wants his pet elephant to live in the garden!), or are you going to let the property out?
Agree financial matters with them at the start.
Decide on the type of property you want to buy - leasehold (generally flats, but sometimes a house) or freehold (generally a house)
How much you want to pay?
Where you want to buy - does it need to have good transport links/public transport links?
How many bedrooms - are you going to let any bedrooms to generate further income?
Do you want a garden/garage?
Have a Declaration of Trust and Joint Ownership Agreement drawn up setting out the agreement reached between you. This should contain details of the contributions made by you and the joint purchaser(s) with regard to deposit and any balance of purchase price put in by any of you, what happens if there are financial difficulties: ie, has one co-purchaser lost their job or are they too ill to work. It may be that insurance in this respect would have to be agreed and taken out - what share in the property each purchaser is to hold (property should be held as 'tenants in common in equal/varied shares), agreement regarding any future sale, whether you will be living in the property or renting it out, if the property is to be let how this will be managed and maintained, what happens in the event of one purchaser becoming seriously ill or dies, provisions for maintenance and upkeep and how this is to be financed, including outgoings in respect of the property generally.
Agree with the other purchaser(s) who you will approach with regard to a mortgage and what type of mortgage you want to obtain - see a financial adviser.


What documents do I need?

You will need a Declaration of Trust and Joint Ownership Agreement
You may need to make a Will.
You may also need insurance in respect of illness or job loss
Evidence of the deposit you are able to come up with would/may be a requirement.
You may also want to set up a joint 'house' account into which the mortgage payments would be paid into and out of.

What happens if I want to move out after a year? Can I sublet?
This depends on the terms of the agreement between you (Joint Ownership Agreement). Have provision been made for this?


Can I buy with more than one person?

Yes, up to four can be legal owners. If more than four then the four will hold the property on trust for the others


Is my deposit safe?

As with any investment, there is always an element of risk

What happens if the person I’m buying with defaults on the mortgage?
Again this should be set out in the Declaration of Trust, however as you will have a joint mortgage you will be jointly and severally liable - this means if one of the purchasers defaults the mortgage lender will look to the other lender(s) to pay


Do I have to sell back to the person I bought with at the beginning?

Again, look at the Joint Ownership Agreement made between you


Do I need a guarantor?

Only if this is a requirement of your mortgage lender


What’s Conveyancing?

Basically the legal process of buying and/or selling of a house/flat/bungalow etc. This involves the solicitor/conveyancer who is instructed by you receiving the contract and supporting documents, and if this is a three bed or more house, the HIP Pack (Home Information Pack), going through the documents to check for errors and omissions, making necessary searches and reporting to you in detail, drawing up the Joint Ownership Agreement and Declaration of Trust, receiving and reporting to you in respect of the mortgage offer and, usually, meeting with you to go through the contract and mortgage documents in order to explain these to you and have the necessary documents signed. Following this the solicitor/conveyancer would also arrange exchange and completion with a date to be agreed between yourselves and the sellers and finally dealing with completion of the purchase and mortgage and registering your ownership at HM Land Registry.

Is it safe to buy with someone?

Only you can decide. There would need to be an element of trust
Setting up the Declaration of Trust and Joint Ownership Agreement between the purchasers should avoid any unnecessary risk if it is well drawn up

What documents if any should each of us sign so we are protected?
The Declaration of Trust and Joint Ownership Agreement

This information has been provided by:
www.mogers.co.uk








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