Share and share alike
When it comes to buying property, many people buy with someone else. A partner, a friend, a spouse or possibly just with the help of family. Getting (and staying) on the property ladder can be hard, so you need all the help you can get.
Owning property with someone else can have consequences, so it’s important that you know going in, what can happen if you, or they, want to get out.
The starting point is, if someone is helping you out, are they gifting you money, or are they lending it to you or are they buying a share of the property?
If it’s a gift, then probably all you need is a reminder to send them a Christmas card and a birthday present.
If it’s a loan, then you need to talk about what the terms are, such as when the money has to be repaid and on what terms. For example: do they get interest? Can they force you to sell the property if they want the money back and you don’t have the cash available? What happens if the market is bad or that means you couldn’t afford to buy somewhere else?
If they are buying a share of the property, then how much, and what rights does it give them? Is your friend giving you a helping hand, or buying themselves unlimited use of your sofa if their partner kicks them out?
The good news is that we’re happy to share our legal knowledge and experience with you, so you know what questions to ask whoever is helping you out, and what reasonable terms to agree with them. We can also share with you the best way to put those terms in writing so that everyone knows where they stand.
Kleyman & Co Solicitors. The full services law firm. Spreading the good word.