No Surprises, Just Security: How to Safeguard Your Property Interests

 
17/06/2025
5 min read

Buying a property with someone — whether it’s a partner, friend, or relative — is exciting, but it’s also a serious legal and financial commitment. While it’s easy to assume everything will go smoothly, life rarely plays by the script. Relationships change, people move, careers shift — and all of these can impact how your property is used, owned, and divided.

That’s why one of the smartest moves you can make is to legally safeguard your property interests with a Deed of Trust.

Think of it like a prenup for your property — designed not out of mistrust, but out of mutual respect and future-proofing. Here’s how to make sure you’re protected from unexpected disputes, confusion, or legal battles — and how to get your share, fair and square.

What Is a Deed of Trust — And Why Do You Need One?

A Deed of Trust (also called a Declaration of Trust) is a legally binding document that sets out:

  • Who owns what percentage of the property
  • How much each party contributed (deposit, mortgage, improvements)
  • What happens if one person wants to sell, leaves, or dies
  • How to divide proceeds if the property is sold

Without one, the law assumes equal ownership — even if you paid more or made other significant contributions. That’s where surprises (and legal nightmares) begin.

Top Reasons People Lose Property Interests Without Realising It

  1. Unequal contributions, but no legal record
    If you paid more for the deposit or covered mortgage payments — but didn’t document it — you might not get that money back if things go south.
  2. One person moves out — and loses involvement
    Out of sight, out of ownership? Not exactly — but without a Deed of Trust, it’s harder to prove ongoing rights.
  3. Breakups or fallouts with no agreement in place
    Love might fade. Friendships might shift. Without a plan, selling or buying out a co-owner can get messy.
  4. Inheritance confusion
    If one owner passes away without clear instructions, their share could go to their family — even if you live in the home and paid for most of it.

What Your Deed of Trust Should Include to Cover All Bases

A well-drafted Deed of Trust isn’t just about ownership splits. It’s about building in security, step by step.

1. Ownership Shares

Clearly state what portion each person owns — e.g. 70/30, 50/50 — and whether this is fixed or can change over time (called a floating share).

2. Deposits & Contributions

Record who paid what — including deposit, legal fees, and stamp duty. If parents or others contributed, note if it’s a gift or loan, and how it should be handled on sale.

3. Mortgage & Bills

Clarify who’s paying the mortgage and how bills, maintenance, and other running costs are split. Also include what happens if one person pays more in the future.

4. Sale or Buyout Rules

If someone wants to leave or sell, how will the property be valued? Who gets first refusal? How quickly must a buyout happen? Protect yourself from delays or unfair deals.

5. Improvements

If one party pays for renovations or upgrades, will their share increase? Your Deed should outline how this added value is calculated and recognized.

6. Death or Inheritance

Without a Will and Deed of Trust working together, your share might not go where you expect. Decide whether ownership passes to the surviving co-owner or to an estate.

7. Dispute Resolution

Should disagreements go to mediation before court? What’s the process if the parties can’t agree? A little structure here can save a lot of money and stress later.

Real-World Examples of Property Surprise (and How to Avoid Them)

Case 1: The Generous Sister
Alice helped her brother and his partner buy a home, contributing £40,000 toward the deposit. They never signed a Deed of Trust. Years later, the couple broke up and sold the home — Alice got nothing.

How to avoid this:

Record any third-party gifts or loans in a Deed of Trust, including whether repayment is expected on sale.

Case 2: The Breakup Blues
James and Ella bought a flat together but split after two years. Ella moved out but continued paying her share. When James later sold the flat without consulting her, Ella had no legal agreement proving her share of the proceeds.

How to avoid this:
Include a clause that both parties must consent to a sale, and outline how profits should be split based on contributions.

Bonus Tip: Register a Restriction on the Title

Want to take protection a step further? Register a Form A or Form B restriction on the property’s title at HM Land Registry. This ensures:

  • No sale or transfer can happen without your consent
  • Your beneficial interest is recorded in public property records

It’s a powerful way to back up your Deed of Trust with extra legal muscle.

When to Set Up a Deed of Trust

You can create a Deed of Trust:

  • Before or during the property purchase (ideal!)
  • After completion (still doable, especially if the situation has changed)

Just don’t wait until there's tension or confusion — it’s always better to set it up before problems arise.

Who Should Use a Deed of Trust?

You should absolutely get one if:

  • You’re buying property with someone else (and contributing different amounts)
  • You’re receiving help from family or friends
  • You’re unmarried and buying as a couple
  • You’re investing with someone on a “silent partner” basis
  • You want to protect your children’s inheritance when helping them buy

Final Thoughts: Control, Clarity, Confidence

Safeguarding your property interests isn’t about expecting the worst — it’s about planning for all possibilities. A Deed of Trust lets you:

  • Stay in control of your investment
  • Avoid nasty surprises if circumstances change
  • Protect your money, your home, and your peace of mind

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