Property Auction House and RICS Registered Valuer
Next Auction:
12/6/2025
Property Auction House and RICS Registered Valuer
Next Auction:
12/6/2025
With UK house prices increasing out of reach, many people are joining forces to get on the property ladder. Joint property purchases offer clear advantages: combined savings for larger deposits, increased borrowing capacity through combined incomes, shared purchasing costs, and divided household bills. However, understanding the legal frameworks is crucial to avoid any future complications.
Unmarried couples should consider:
With friends or siblings: Most choose tenants in common. Since these arrangements are rarely intended to be lifelong, a deed of trust and/or cohabitation agreement is essential to outline financial contributions, responsibilities, and exit strategies.
Ownership structures
When buying together, you must choose between two ownership structures:
Joint tenants: Both parties own the property equally. If one owner dies, their share automatically passes to the surviving owner regardless of what's in their will.
Tenants in common: Each party owns a specific share of the property (not necessarily 50/50), which can reflect their respective contributions to the deposit or mortgage payments. Owners can leave their share to anyone in their will. This arrangement should be documented in a deed of trust drawn up by a solicitor.
Buying with different partners
With a spouse: Married couples usually opt for joint tenancy. While the default starting point for divorce finances is a 50/50 split, courts prioritise fairness over strict equality, considering factors like childcare arrangements and future earning potential.
With an unmarried partner: Either ownership structure is possible, but tenants in common offers flexibility to reflect differing financial contributions. Bear in mind that regardless of ownership structure, each party remains potentially liable for the entire mortgage.
Be aware that joint mortgages create a financial association on your credit reports.
If your co-buyer has poor credit, this could affect your future borrowing ability, even for separate loans.
With parents: A popular option is the joint borrower sole proprietor (JBSP) mortgage, where parents share responsibility for repayments without being named on the property deeds. This arrangement uses parental income to boost mortgage affordability while allowing first-time buyers sole ownership.
JBSP mortgages are increasingly available from lenders including Barclays, Metro Bank, Suffolk Building Society, Skipton Building Society, and several others. Each has different policies regarding the number of parties allowed and age restrictions for supporting applicants.
Another common form of parental assistance is gifted deposits – cash gifts (not loans) that contribute toward mortgage deposits.
Navigating the co-buying journey
In general, if you decide to buy with someone else, complete transparency is essential. Have thorough conversations and plan carefully how the arrangement will work. Expect to have some challenging discussions about property preferences, location priorities, and financial details you may not have previously shared.
The biggest hurdle typically emerges when one party wants to exit the arrangement before the other. "The main potential challenges are if one person wants to sell up or move out before the other," explains mortgage expert Lisa Parker. "It's vital to discuss these scenarios upfront, so everyone knows where they stand."
Consider creating a written "exit strategy" that addresses questions like:
The information we provide is our personal opinion and should not be relied upon for legal advice. Should you need legal advice or guidance, please contact an appropriate professional.
If you are thinking of buying or selling a property, give us a call at Phillip Arnold Auctions - 020 8799 3880. Or, to see our latest properties visit our website.
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