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 (SLDT, 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.

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

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).
Please accept our Terms of Service
Pay to book an appointment
If you have already paid then key in your password sent to you via email in the below box and then click Draft My Deed. If you haven't yet paid then you can do so using a debit or credit card using Paypal (you don't need a Paypal account) or call to pay by card over the phone and get your password call 0207 183 4547.
Type payment code here
Fixed Solicitor Fee
(see Terms for scope of work)

£0.00
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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.



Frequently Asked Questions

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.
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.
The formula used in the floating deed of trust 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:

    1
    supply your intentions for the beneficial interest over the lifetime of the property;
    2
    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;
    3
    the clause is drafted and included within the deed of trust you have purchased.

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.
You can work out the current equity in the property by taking the estimated current market value or purchase price deducting all mortgage debt and what is left is your current equity.

If you try and get repaid any additional money on top of the current equity then this is a loan agreement between the parties as there is not enough equity in the property to cover the amounts being repaid.
You aren't repaid the money you paid toward the property, however the money you pay increases your contribution toward the property in the floating deed of trust formula and thus increases your beneficial share of any net sales proceeds.
There is no definitive list of what counts as a repair or renovation that adds value to the property. Painting and tiling won't but extending and adding a new room will.

To account for this you should keep a register of works undertaken and who paid for them and then on sale or transfer use a RICS surveyor to value the property with and without the works that have been undertaken. If the surveyor does not feel the property price has changed because of the works done then they will inform you.

If you wish for a specific clause to be created within your floating deed of trust to confirm what works are repairs and renovations that will increase your beneficial interest then send these to us and we will quote you for the inclusion of this clause at a rate of £200 EXC VAT per hour. Only the floating or bespoke deed of trust service can have this definition because the other deeds of trust do not include the floating formula.
The renovation cost isn't repaid to the co-owner as part of the floating deed of trust formula to distribute net sale proceeds. Payments toward renovations increase a co-owner's total spend toward the property that in turn will increase their beneficial interest used to share net sales proceeds on sale or transfer.

For example, if you spend £100,000 to add an extension onto the property, the spend of £100,000 is added to your contribution toward the property in the formula and will increase the beneficial interest. Your beneficial interest is a percentage that is used to share any gain or loss from the net sale proceeds. The £100,000 for renovations is not repaid to you. If you want this to be repaid then a separate loan agreement is required to be drafted at an additional cost of £399 INC VAT.

    1
    we charge an hourly rate of £200 EXC VAT per hour to include your changes. The changes are of your own choice and as such we take no responsibility as to their future enforcement.
    2
    the party to the floating deed of trust who is not a client must obtain independent legal advice with regards to the deed. This is an additional cost and we cannot act for them due to a conflict of interest with our own client.

If you wish to cancel your instruction following the receipt of your first draft of the deed then you will be liable for the work undertaken until you cancel at our hourly rate of £200 EXC VAT per hour.
All parties to the floating deed of trust must have their signature witnessed by separate witnesses not the same person. The witnesses can be a friend, co-worker or neighbour, but not family or someone who benefits from this transaction. The witness must sign the deed, print their name and provide their home address.
The outgoings are stated at the outset. However, the formula accounts for either party to pay any variable share of the mortgage repayments and this will then directly effect their share of the beneficial interest on sale. Although, please note: all parties named on the mortgage are jointly and severally liable to repay the mortgage no matter what.
There are no maintenance obligations in this deed however it is in the interest of both parties to keep the property in good order to achieve the highest sale price
Fill out now as a legal owner, sign and witness and then send to your solicitor to date upon completion of your transfer.

Talk to a solicitor

Get in contact today to get straight talking legal advice from a specialist solicitor about a deed of trust.