Protect Your Share: Lock In Your Property Rights Today

 
17/06/2025
5 min read

When it comes to property ownership, especially with partners, friends, or family, most people don’t think twice about formalising who owns what. Everything feels secure—until it’s not. Whether you’re buying your first home with a partner, investing in property with friends, or moving into a shared family asset, not having a clear legal agreement can quickly become a problem when life changes.

That’s why it’s essential to lock in your property rights from day one. A formal agreement—like a Deed of Trust—doesn’t just outline ownership shares. It gives clarity, peace of mind, and most importantly, protection when circumstances shift unexpectedly.

Why Ownership Clarity Matters

Buying property with someone else? Congratulations—but remember: unless you clearly define who owns what, your intentions might not be reflected in the law.

Here’s a scenario:

  • You and your partner buy a house together.
  • You put in £80,000 as a deposit. They contribute £20,000.
  • You both pay the mortgage equally.

Years down the line, you break up. Who gets what?

If you didn’t document it, the law may assume equal ownership, no matter what each of you put in. Without proof, you may lose a big chunk of what you paid into the property.

Common Situations Where You Need Protection

Here are a few common arrangements where a Deed of Trust (also known as a Declaration of Trust) or similar legal agreement is crucial:

1. Unequal Deposits

One person pays a bigger deposit, or even all of it. If you don’t write that down legally, the default assumption is often 50/50.

2. Family Contributions

Parents helping with a deposit? If their name’s not on the title or a deed isn’t in place, that money might not be protected if there’s a dispute.

3. Joint Ownership with Friends

You and a friend buy a place to live in or rent out. What if one wants to sell, or stops contributing to mortgage payments?

4. Married or Unmarried Couples

In the UK, "common law marriage" has no legal weight. If you're unmarried, property rights aren’t automatically protected like they are in divorce proceedings—so legal documents matter more than ever.

What Is a Deed of Trust?

A Deed of Trust is a legal document that sets out:

  • How much each person contributed to the purchase
  • How future sale proceeds will be divided
  • What happens if someone wants out or can no longer contribute
  • How the mortgage and other costs will be handled

It essentially locks in your arrangement at the time of purchase (or can be created later) to prevent arguments or financial loss in the future.

Types of Deed of Trust Arrangements

1. Fixed Share Deed of Trust

This is the most common. Each owner is assigned a set percentage of the property, based on what they contributed.

For example:

  • Person A contributed 70% of the deposit.
  • Person B contributed 30%.
  • Future proceeds are split accordingly.

2. Floating or Variable Share Deed

A more flexible approach, this takes into account ongoing contributions (like who paid what toward the mortgage or renovations) and allows shares to shift accordingly.

This is useful if you expect changes in financial input over time and want the agreement to reflect those fluctuations.

3. Deed of Trust with a Declaration of Loan

If a parent or third party is helping financially, a deed can include a declaration that their money is a loan, not a gift. That way, it gets repaid when the property is sold.

Why Relying on Verbal Agreements Is a Risk

Verbal agreements may seem fine in the moment—especially if you’re dealing with someone you trust. But memories fade. Circumstances change. Relationships evolve.

And courts won’t settle disputes based on “he said, she said.” You need something in writing, signed, and legally binding.

Without a deed, legal battles can get expensive, stressful, and emotionally exhausting. It’s not about planning for a breakup or fallout—it’s about making sure everyone is protected if something happens.

How to Create a Deed of Trust

Creating a Deed of Trust is straightforward, especially when done at the time of purchase. Here's a simple guide:

Step 1: Agree on the Terms

Discuss with your co-owner(s):

  • Who paid what?
  • What happens if someone wants to sell?
  • Who pays the mortgage, and how much?
  • What about renovations or bills?

Step 2: Work with a Solicitor

Even though there are templates online, it’s best to work with a solicitor—especially for more complex arrangements. They’ll help you:

  • Avoid vague or unenforceable language
  • Draft a deed that fits your situation
  • Register the deed properly alongside your title deeds

Step 3: Update If Needed

Circumstances change—new contributions, renovations, refinancing. The Deed of Trust can be amended or replaced as needed with mutual agreement.

What Happens If You Don’t Have One?

Without a deed or agreement in place, disputes over property often escalate to litigation. This is especially risky if:

  • You're not married or in a civil partnership
  • One party contributed more financially
  • A third party (like a parent) helped out
  • One person stops paying their share

The cost of drafting a deed upfront is tiny compared to the cost of court battles or losing your financial contribution entirely.

Bonus Protection: Consider a Cohabitation Agreement

If you’re living together as a couple and not married, a Cohabitation Agreement can work alongside your Deed of Trust. It covers wider issues like:

  • Household bills
  • Shared responsibilities
  • What happens if the relationship ends

This helps protect both parties and prevent future confusion.

What If You Already Own Property?

It’s never too late. Even if you’ve owned a home together for years, you can still draft a Deed of Trust to reflect your situation and protect your share going forward.

It’s especially wise if:

  • One person wants to increase their financial input
  • One party plans to move out
  • You’re refinancing or taking out a loan secured on the property

Final Thoughts: Peace of Mind for the Price of Clarity

When it comes to your home or investment, assumptions are dangerous. Locking in your property rights isn’t pessimistic—it’s smart. It protects relationships, avoids confusion, and ensures everyone’s financial contribution is respected.

Whether you’re contributing more, bringing in outside help, or just want clarity, a Deed of Trust is one of the simplest ways to protect your share.

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