Co-Buying a Property in England or Wales? Here’s What You Must Know Before You Sign
With house prices climbing steadily and single-income affordability shrinking, more buyers are teaming up with friends, partners, siblings—even parents—to get on the property ladder. But while joint ownership can be an effective way to break into the market, it comes with legal and financial risks that you can’t afford to ignore.
If you're thinking of buying a property jointly in England or Wales, whether with a partner or pal, here’s what you need to know to protect your investment and your relationship.
Why People Co-Buy Property Today
According to a recent survey, 40% of young adults aged 18 to 45 believe they’ll never afford a home on their own. Joint ownership provides a solution: pooling deposits, combining incomes for bigger mortgages, and sharing the cost of legal fees and stamp duty.
But convenience and affordability don’t guarantee fairness or legal protection. That’s where careful planning—and professional advice—come in.
Two Ways to Own Property Jointly
There are two main legal ways to hold a property jointly:
1. Joint Tenants
This is the default option for most married couples. Both owners are treated as having an equal 50/50 stake in the whole property. If one of you dies, the other automatically inherits the entire property—regardless of any will.
But here's the catch: you can’t pass your share to someone else in your will, and if things go south (e.g., divorce or separation), you may not recover more than 50%, even if you paid more into the property.
2. Tenants in Common
Each buyer owns a distinct percentage share of the property. That share can reflect unequal contributions to the deposit, mortgage, or running costs—and it can be changed later if circumstances shift.
Most friends, siblings, and unmarried couples choose this structure. It offers greater clarity, especially when paired with a deed of trust.
What Is a Deed of Trust?
A deed of trust (also called a declaration of trust) is a legally binding document that outlines who owns what percentage of the property, how costs are shared, and what happens if one person wants to sell or move out.
It can also cover:
- What happens if one person dies
- What to do if a dispute arises
- Who is responsible for specific outgoings
You should always get legal advice to draft a deed of trust tailored to your situation. A poorly worded or generic agreement won’t hold up in court.
Buying With a Spouse
Most married couples opt for joint tenancy. If you split up, the starting point in divorce is usually a 50/50 division of the equity. But courts have discretion and will look at factors like:
- Who paid the deposit
- Childcare responsibilities
- Earning potential
- Housing needs
While you don’t typically need a deed of trust when married, a pre-nuptial agreement or post-nuptial agreement can help if one partner brings significantly more financial assets into the marriage.
Buying With an Unmarried Partner
This is where things get legally murkier. Unmarried couples don’t have the same rights as married ones—even if they’ve been living together for years.
To protect yourself, you should:
- Buy as tenants in common
- Have a deed of trust drawn up
- Consider a cohabitation agreement
A cohabitation agreement sets out day-to-day arrangements like:
- How much each person pays toward the mortgage and bills
- How shared or individual debts are handled
- What happens if you break up, become ill, or die
You can even agree on what happens to furniture, pets, and personal belongings. Having these agreements in place doesn’t make things awkward—it helps avoid future confusion or conflict.
Buying With Friends or Siblings
Buying with a mate or sibling can be a fantastic way to escape renting, but it’s not without risk.
Like with unmarried couples, you’ll want to buy as tenants in common and agree on:
- Ownership shares (especially if one person pays more upfront)
- What happens if one of you wants to move a partner in
- Who handles maintenance and bills
- An exit plan if one person wants to sell
A joint mortgage means you're both "jointly and severally liable"—in plain English, if your co-owner stops paying, the bank will still come after you for the full monthly payment.
Worse, your credit reports will be linked, so their spending behaviour (or missed payments) could impact your ability to get credit in the future.
A properly drafted deed of trust and cohabitation agreement can help avoid resentment and protect your investment if life changes down the line.
Buying With a Parent: JBSP Mortgages
If your parent wants to help you buy without becoming a co-owner, a Joint Borrower Sole Proprietor (JBSP) mortgage might be ideal.
Here’s how it works:
- Both you and your parent are responsible for the mortgage repayments
- But only your name appears on the property title (so there’s no additional stamp duty)
- Your parent’s income helps boost borrowing power
Some lenders even allow up to six people on the mortgage (e.g., Gen H), making it possible for siblings or other supporters to help too.
This is a great option for parents wanting to help their children into homeownership without tying up their own estate. But if you're a parent helping a child, get legal advice—especially if you’re contributing a large deposit. You’ll want clarity on whether it’s a gift, a loan, or a stake in the property.
Gifted Deposits: Legal Pitfalls to Avoid
If a parent (or anyone else) is giving you money for the deposit, this must be declared to your lender as a gift, not a loan—unless there’s a repayment expectation.
Your solicitor will likely ask the gift-giver to sign a gifted deposit letter, confirming:
- It’s a genuine gift
- No repayment is expected
- The donor won’t try to claim ownership later
But a word of caution: if the relationship ever sours or isn’t clearly documented, disputes can arise. Legal advice ensures everything is transparent.
Case Study: Jack and Gemma
Jack and Gemma were long-time flatmates tired of spiralling rent. In their late 20s, they decided to buy a flat together after saving separately via help-to-buy and lifetime ISAs.
They chose to:
- Split the £44,000 deposit 50/50
- Buy as tenants in common
- Use a deed of trust to record contributions
- Plan an exit strategy in case one wanted to move on
Their advice? “Be completely transparent, and have the awkward conversations early. It makes everything easier later.”
Key Takeaways
Always decide whether joint tenants or tenants in common is right for your situation
Protect your interests with a deed of trust and (where applicable) a cohabitation agreement
Consider your financial link and credit implications
Don’t assume verbal agreements will hold water—put it in writing
Seek legal advice to make sure everything is watertight
How Parachute Law Can Help
Whether you’re buying with your partner, parent, or best friend, joint ownership is a legal relationship—and it deserves legal protection.
At Parachute Law, we specialise in:
- Deeds of trust
- Cohabitation agreements
- Gifted deposit letters
- Joint borrower sole proprietor legal structuring
- Ownership structure advice for couples, friends, and families
Don’t take risks with your biggest financial asset. Let us help you buy smart, stay protected, and avoid future disputes.
Ready to Protect Your Share?
If you're separating from a co-owner or ex-partner, don’t delay. Severing the joint tenancy is the first step toward protecting your share and reaching a fair resolution.
Email us at thelegalteam@parachutelaw.co.uk
Call Parachute Law today on 0207 183 4547
Call us today or book a fixed-fee consultation to get started.
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