Floating Deed of Trust

 
 
Order a Floating Deed of Trust Online Instruction
Use our online form to provide us with all the information our solicitor needs to draft you a floating deed.
 
Transaction Reference:
(If you are already a Parachute Law client you must use your client reference to sync your details to this form, it'll save you filling your details in again)
Transaction Reference:
(If you are already a Parachute Law client you must use your client reference to sync your details to this form, it'll save you filling your details in again)
Text me my security code
Security Code
Details of parties to the deed
Title
First name
Middle name/s
Last name
Mobile number
Home Postcode
Flat No:
First line
Second line
Town/City
County

What is the relationship between you and the other party?
Are you a legal owner of the property?
A legal owner is named on the title at the Land Registry.
Are you a beneficial owner of the property?
A beneficial owner does not need to be a legal owner.

What are the total costs of purchase?
Costs of purchase include but are not limited to Stamp Duty, Land Registry, Solicitor fees, Removals, Surveys and Searches. These must be costs directly used to purchase the property.

What is your share of the Costs of Purchase? (£)
When added together with the other party to the deed then this adds up to the total Costs of Purchase.

What is your initial deposit? (£)

What is your share of the outgoings?
Outgoings include but are not limited to rates, utilities and insurance. They are typically shared in the same percentage split as your beneficial interest.
Add a party to the deed ( Same Home )
Property details your deed relates to
Postcode of property
Flat No:
First line
Second line
Town
County

Is the property freehold or leasehold?

Is the property a residential or a buy to let?

Do you currently own the property?

How do you currently own the property?
If you are unsure we will check for you. Joint Tenants cannot hold separate beneficial shares in a property. If the property is currently held as Joint Tenants then we can help sever the joint tenancy so the property is held as Tenants in Common for an additional fee.

What is the property's current price?
If you are buying the property this is the price you are paying. If you already own the property this is the estimated current market value as at today's date.

Is there a mortgage registered over the property?

What is the mortgage value?
If you are buying then this is the total mortgage debt as at completion (this may include mortgage valuation and admin fees added onto the mortgage debt). If you already own the property this is the estimated current total mortgage debt as at today's date.

What is the name of your mortgage lender?
If you are buying then this is the name of your mortgage lender helping you fund the purchase. If you already own the property it is the name of your mortgage lender who has a registered charge over your property.

Do you have any special requests?
Attach Documents
You can attach a scan .PDF or a .JPEG. There is a free to use App called TurboScan for Android or IOS phones which converts a photo to .PDF on your mobile.

    1
    Proof of Photo ID
Attach a copy of your current valid passport or driving licence for all parties.
    2
    Proof of Address
Attach 2 scan copies of your home address (you can't use the same company twice for different months. You can use a utility/mobile bill, formal notice like HMRC letter or council tax or bank statement no older than 3 months).
Parachute Law Solicitors
21 Silwood Road
Ascot
Berkshire
SL5 0PY
T: 0207 183 4547
F: 0207 183 2973
ParachuteLawSolicitors.png
 
 

CLIENT CARE AND TERMS OF ENGAGEMENT IN RESPECT OF: Floating Basic Deed of Trust

 
These terms set out some important information about our professional relationship with you as well as our terms and conditions. It is vital that you read the information carefully. Please note that we only act for the addressee(s) of this letter. We will not correspond with any other parties about your file without your express written permission.
 

Responsibility for your case

The person responsible for all of the work on your matter is Claudine Boast. She is assisted by Ashlee High who will also be working on your matter under Claudine’s supervision.
 

Scope of work

A fixed fee of £399 INC VAT has been agreed for the following:
 
  • Declaration of trust using the floating formula for distribution of property income (rent/net sale proceeds) based on contribution toward the equity/deposit, costs of purchase, mortgage repayments and repairs and renovations. The more a party contributes, the greater their interest in the property
  • Lists the names of all legal and beneficial owners
  • Explains how to share rental income
  • Mechanism for transferring beneficial interest between parties
  • States the individual contributions towards outgoings
  • Maintenance obligations
  • Explains how to sell the property in the future
 
This is a standard document drafted by a solicitor that includes clauses as stated above. If you wish to add any additional clauses or tailor the deed then our solicitor can help and will agree an additional fee with you for doing this. We will charge extra for Material changes to the original intentions. We will draft the deed of trust based on your intentions and offer one free revision. Should you look to change your intentions, supply incorrect details or you require a bespoke service then our solicitor will charge for this work on an hourly basis of £200 EXC VAT.
 

Points to Note:

  • The deed cannot be backdated.
  • This scope does not include registration of any notices or restrictions at HM Land Registry unless you have paid for the service to register a restriction. If you wish to instruct us to do that, please get in touch.
  • The title to the legal estate will not change. Depending on the revisions made, it may only be the entitlement to the beneficial estate that will change. However, as one of the Parties may acquire an interest in land, stamp duty land tax (SDLT) or land transaction tax (LTT) will be payable by reference to any chargeable consideration given for it. You are required by law to declare and pay any stamp duty land tax applicable to the transaction. You should therefore speak to a specialist stamp duty land tax adviser before instructing the Deed. Parachute Law are not specialists in tax law and cannot give you tax advice.
 
Please check these carefully and let us know if you have any comments or concerns relating to them.
 

Legal Fees

You have instructed based on a fixed fee for a specific scope of work. In the event further work is needed to be undertaken then our legal fees are calculated by reference to the time spent by our fee earners in respect of any work which they do on your behalf unless a further fixed fee is agreed at the outset in respect of a specific scope of work.
 

Billing Arrangements

We charge £300 INC VAT per hour for legal work. We charge in 15 minute units, rounding to the nearest 15 minutes. Our hourly rates are reviewed every year to reflect increases in overhead costs and inflation.
 
Normally the rates are reviewed with effect from 1 January each year.
 
For work that falls outside the scope of the fixed fee, then in accordance with our usual practice in long running cases, we shall deliver bills to you at regular intervals for work carried out during the conduct of this matter.
 

Cancellation Policy

You may cancel the instruction at any time and ask for a refund. We will keep what’s necessary to cover the cost of services provided up until you cancelled. For document and deed drafting services, the fee you have have paid is broken down as follows: 75% for production of the first draft, 25% for finalising and circulating the final version. Therefore, if you cancel having received the first draft, you will be entitled to receive 25% of your fee.
 

Service Levels

We will update you by telephone or by email with progress on your matter following receipt of important information about your matter or when any important event occurs in your matter.
 
We will communicate with you in plain language. Our preferred manner of communication is email. We do not normally send letters in the post, if you prefer another method of communication such as post or fax you should tell us. We will explain to you by telephone or by email the legal work required as your matter progresses.
 

Liability

If we fail to comply with these terms, we are responsible for loss or damage you suffer that is a foreseeable result of our breaking this contract or our failing to use reasonable care and skill but we are not responsible for any loss or damage that is not foreseeable. Loss or damage is foreseeable if either it is obvious that it will happen or if, at the time the contract was made, both we and you knew it might happen, for example, if you discussed it with us.
 
We do not exclude or limit in any way our liability to you where it would be unlawful to do so. This includes liability for the negligence of our employees, agents or subcontractors; for fraud or fraudulent misrepresentation; for breach of your legal rights in relation to the services including the right to receive services which are as described and supplied with reasonable skill and care.
 

Referral Arrangements

Your instructions have been passed to us by SAM Conveyancing. As such, we must comply with Chapter 9 of the Solicitors' Regulation Authority Code of Conduct. We advise that we have a commercial arrangement with SAM Conveyancing relating to their introduction of clients to us. We believe that this relationship is of benefit to you, enhancing the delivery of our services. Upon completion of this matter, we will make a referral payment to them. To be clear, this payment is made by us and is not an additional payment that we require from you.
 
By signing the Acceptance Form, you confirm that you are giving us permission to disclose information relating to your matter to SAM Conveyancing. If you do not agree that we may do so, please advise us in writing. If at any time we feel that a conflict of interest may arise as a result of our relationship with SAM Conveyancing we will cease acting.
 

Our Standard of Care

The legal services that we provide are authorised and regulated by the Solicitors Regulation Authority whose rules can be inspected at www.sra.org.uk. Our registration number with the Solicitors Regulation Authority is 646947. These terms and conditions are set out to comply with certain legal requirements in part and the professional requirements and advice of the Solicitors Regulation Authority and the Law Society. Their other purpose is to indicate to clients as clearly as possible the standard of service that they can expect from us, the amounts that we will charge for the work that we do and our methods of charging.
 
These terms and conditions do not affect statutory and common law rules that govern solicitors’ business.
However, if there is a conflict between the terms and conditions and such rules, the terms and conditions will prevail so far as it is possible for them to do so.
 
When the words ‘we’ and ‘us’ are used in these terms and conditions, they mean Parachute Law Solicitors.
 
Your responsibilities include the following:
  1. You will provide us with clear, timely and accurate information.
  2. You will inform us of any changes in your circumstances or awareness which may affect your file.
  3. You will provide all documentation required to progress matters in a timely manner.
 

Complaints

We are committed to high quality legal advice and client care. If you are unhappy about any aspect of the service you have received or about the bill, please contact Parachute Law on 0207 183 4547, claudine@parachutelaw.co.uk or by post to our office.
 
We have eight weeks to consider your complaint. If we have not resolved it within this time you may complain to the Legal Ombudsman. If you are not satisfied with our handling of your complaint you can ask the Legal Ombudsman at PO Box 6806, Wolverhampton, WV1 9WJ to consider the complaint.
 
Normally, you will need to bring a complaint to the Legal Ombudsman within six months of receiving a final written response from us about your complaint or within six years of the act or omission about which you are complaining occurring (or if outside of this period, within three years of when you should reasonably have been aware of it).
 

Complaints about our bills

If you are not satisfied about our bill you are entitled to challenge or make a complaint about that bill. You may also apply to the court for an assessment of our bill under Part III of the Solicitors Act 1974.
 

Interest on Unpaid Bills

If all or part of the bill remains unpaid, we may be entitled to charge interest.
 

Professional Indemnity Insurance

We have Professional Indemnity Insurance to cover work undertaken by us in England and Wales. Our insurers are:
Travelers Insurance Company Limited
61-63 London Road
Redhill
Surrey
RH1 1NA
 

Data Protection

The way in which we use your personal data is regulated by data protection legislation in addition to our professional duty of confidentiality. Our up-to-date privacy notice is available on our website (www.parachutelaw.co.uk). We may amend our privacy notice periodically to ensure it is operating effectively and complies with relevant laws and regulations. Where you provide any personal data to us (including that of third parties involved in the matter), you are responsible for ensuring that disclosure by you or on your behalf to us for use by us in the provision of our services complies with the requirements of data protection legislation.
 
You have the sole responsibility for the accuracy, quality and legality of the personal data you provide to us.
 

Storage of Documents

After completing the work, we will be entitled to keep all your papers and documents while there is still money owed to us for fees and expenses. We will keep our file of your papers for up to 6 years. We keep files on the understanding that we can destroy them 6 years after the date of the final bill. We do not offer the service of storing documents in safe custody.
 

Notice of right to Cancel

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 give you the right to cancel your agreement with us, without giving any reason, at any time during the 14 days immediately following the day that you return the copy of this letter (the "cooling off period"). Rather than our waiting for the cooling off period to expire before starting work on your file, at your election, we can start work for you right away however you will then lose your right to cancel and you will be responsible for the fees incurred by us for the work that we have undertaken for you. If you would like us to commence work before the end of the cancellation period, please tick the box indicating your Agreement to Commence Work, when signing and returning the copy of this letter of engagement or later, if appropriate. This may mean that you lose the right to cancel.
 
You will be required to pay for the services provided to you, with your agreement, before the end of the cancellation period. Please note that under the firm's terms of engagement you have the right to instruct us to stop work at any time (whether during or after the cancellation period).
 
We reserve the right to destroy all paper documents and to store an electronic copy only.
If you want us to return any paper documents to you at the end of a case you must inform us in writing. If we take papers or documents out of storage in relation to continuing or new instructions to act for you, we will not normally charge for such retrieval.
 
However we may charge you both for:
  1. time spent producing stored papers that are requested
  2. reading, correspondence or other work necessary to comply with your instructions in relation to the retrieved papers
 

Cancellation Policy

You may cancel the instruction at any time and ask for a refund. We will keep what’s necessary to cover the cost of services provided up until you cancelled. For document and deed drafting services, the fee you have have paid is broken down as follows: 75% for production of the first draft, 25% for finalising and circulating the final version. Therefore, if you cancel having received the first draft, you will be entitled to receive 25% of your fee.
 

Outsourcing

Sometimes we ask other companies or people to do typing/photocopying/other work on our files to ensure this is done promptly. We will always seek a confidentiality agreement with these outsourced providers. If you do not want your file to be outsourced, please tell us as soon as possible.
 

Auditing and Vetting of Files

External firms or organisations may conduct audit or quality checks on our practice. These external firms or organisations are required to maintain confidentiality in relation to your files.
 

Terminating this Retainer

You may end your instructions to us in writing at any time, but we can keep all your papers and documents while there is still money owed to us for fees and expenses. We may decide to stop acting for you only with good reason. We must give you reasonable notice that we will stop acting for you.
 
If you or we decide that we should stop acting for you, you will pay our charges up until that point. These are calculated on an hourly basis plus expenses or by proportion of the agreed fee as set out in these terms and conditions depending on the whether you have paid a fixed fee or are paying for our services at an hourly rate.
 

Disclosure

We are professionally and legally obliged to keep your affairs confidential. However, solicitors may be required by statute to make a disclosure to the Serious Organised Crime Agency where they know or suspect that a transaction may involve money laundering or terrorist financing. If we make a disclosure in relation to your matter, we may not be able to tell you that a disclosure has been made. We may have to stop working on your matter for a period of time and may not be able to tell you why.
 

Distance Selling Regulations

If we have not met with you in person then Consumer Protection (Distance Selling) Regulations 2000 apply to this work. This means you have the right to cancel your instructions to us within seven working days of receiving this letter. You can cancel your instructions by contacting us by post or email to this office. Once we have started work on your file, you will be charged for the work that we have done if you then cancel your instructions.
 

Cash Payment to Third Parties

We confirm that we will carry out the necessary checks in order to verify the identity of our client for the delivery of the Service. If you are required by your conveyancing solicitor or a mortgage lender to obtain certified ID then you can do so by:
 
  • Click here to book and pay for an appointment to certify your ID via video conference. This service is not included within your original fee as it is not required to provide independent legal advice. Book a meeting to certify documents.
  • Find a solicitor local to you to certify your ID via video conference.
 

Accepting our Terms of Business

 
By ticking the button online "I Agree to the Terms & Conditions" in this form you are accepting these terms of service. If terms received by email then please email thelegalteam@parachutelaw.co.uk stating "I Agree to the Terms & Conditions".
 
Last updated: 18th May 2021
Please accept our Terms of Service
Fixed Solicitor Fee
Floating Deed of Trust

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Deed of Trust Order Confirmation

What happens next?

    1
    We review your intentions our solicitor reviews your intentions and the Land Registry title ownership and asks for clarification on any points they deem necessary.
    2
    First Draft our solicitor drafts your deed and this is sent to you for your review. You have one free revision built into the quote you have paid for. We aim to deliver your first draft within 2 to 3 working days.
    3
    Final Deed the final deed is sent to you to execute and send onto your conveyancing solicitor if you are getting the deed registered. If we are registering the deed for you then we will guide you through what happens next in our email.



This service is available at a Fixed Fee of £399 INC VAT. Terms apply.


What is a floating deed of trust?

A floating deed of trust allows the co-owners of a property to have a beneficial interest that changes over time by their individual contributions toward:

    1
    Purchase price (deposit/current equity split)
    2
    Purchase costs (SDLT, legal fees, etc.)
    3
    Repairs/Renovations
    4
    Mortgage repayments

Unlike a fixed beneficial share deed of trust which doesn't go up or down even if one party moves out and stops paying toward the mortgage, a floating deed of trust allows for the co-owners to pay more of the above and increase the beneficial ownership. This will in turn increase their share of any gain or loss from the net sale proceeds.

What is included in the Floating Basic Deed of Trust?
We offer the standard clauses found within our Basic Deed of Trust, however replace the fixed formula with the variable based floating formula. The clauses included are:

  • Lists the names of all legal and beneficial owners
  • Floating formula for distribution of property income (rent/net sale proceeds)
  • Explains how to share rental income
  • States the individual contributions toward outgoings
  • Maintenance obligations
  • Process for transferring beneficial interest between parties (buying each other's beneficial interest)
  • Process for how to sell the property in the future offering right of first refusal to the other co-owners

We can add additional clauses into the agreement to suit your intentions/circumstances however these will be chargeable at our solicitors hourly rate.

It is important to ensure all parties get independent advice regarding the agreed beneficial interest split, especially if the floating deed of trust formula is complex, as it will reduce the chances of the deed being contested for unfairness in the future.

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What is the floating formula?
The formula is broken down into 5 stages.

    1
    The change in the value of the property is apportioned between the contributions towards the purchase (original deposit and the costs of purchase such as SDLT) and improvement of the property made by the co-owners individually and by virtue of the mortgage advance(s).
    2
    The increase or reduction in the value of the property attributable to the amounts(s) provided by way of the mortgage(s) is apportioned between the co-owners according to their respective contribution towards repayment of the mortgage(s).
    3
    The co-owner's entitlements from stages one and two are added together.
    4
    The sale costs (such as estate agents and legal fees) are apportioned between the co-owners in accordance with their entitlements in stage three.
    5
    The co-owner's shares of the net proceeds of sale are ascertained.

This is the generally accepted formula that the courts would likely use to settle a beneficial interest dispute and we cannot make any changes to it.

Can I make changes to the floating deed of trust formula?
The formula is the same one used when a court needs to confirm a beneficial split in a property where the joint owners don't have a deed. This means that the formula is tested and is in accordance with applicable laws.

Where you want to change any part of the formula this can affect the overall result and as such you are risking a future dispute between the joint owner/s. If you still want to change the formula then you need to:

  • supply your intentions for the beneficial interest over the lifetime of the property;
  • depending on the complexity either our solicitor will charge an hourly rate to draft the clause or we will get a quote from a specialist external counsel to draft the clause for you;
  • the clause is drafted and included within the deed of trust you have purchased.

 
 
 
Frequently Asked Questions
CalcEquity
Repaid
Repairs
Revonations
Witness
Example
Outgoings
Maintenance
 
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