Why would I need a Deed of Trust?

When you buy a property with someone else, a partner or a friend, there are two ways you can structure the ownership of the property. You can either be joint tenants or tenants in common.  

  • If you choose to hold the property as joint tenants, each co-owner is deemed to own the whole property rather than a specific share. The right of survivorship applies, meaning that upon the death of one co-owner, their interest in the property automatically passes to the surviving co-owner. As a result, a joint tenant cannot leave their interest in the property to a third party (such as a child or sibling) under the terms of their will.
  • If you choose to be tenants in common you should have a Deed of Trust as it sets out in a legally binding document who owns what proportion of the property and avoids potential future financial disagreements.

How does a Deed of Trust work?

When you buy a house with someone else you may be putting in a different amount of funds for the deposit or have agreed to pay for the monthly mortgage repayments in different proportions.  In these situations, if unmarried, a Deed of Trust clarifies who owns what proportion of the property. This can be vital in the future when it comes to selling the house or should a relationship – personal or other – break down. 

A Deed of Trust can also be used to “ringfence” any deposit contribution made by a parent or other family member, ensuring that it is repaid when the property is subsequently sold.

Is it a complicated process?

Setting up a Deed of Trust is very straightforward. We will send you a questionnaire with a few simple questions regarding the financial aspects of your property purchase and then create a Deed of Trust which will clearly state exactly what percentage of the property each person owns and what happens if the property is sold or one of the owners wants to be bought out.

This is how it works in practice

  • If you and your partner are buying a £250,000 property you may be putting down a 10% deposit together and paying for the rest with a joint mortgage.
  • You are putting in £15,000 of the deposit while your partner is contributing £10,000.
  • A Deed of Trust will record this information and ensure that you each get your fair share of the property when it is one day sold.
  • In this example, the Deed of Trust would state that you put in 60% of the deposit while your partner covered 40%. Then when sold the property you would receive 60% of the proceeds and your partner would get 40%.
  • You could also record in the Deed of Trust if one of you is making larger contributions to the mortgage repayments than the other, or one of you is paying for any work on the property. Then the proceeds of any sale would be divided to reflect any extra capital that is invested.

What is included in a Deed of Trust?

A Deed of Trust is used to make a legal record of the different amounts joint owners have paid into a property. However, the document can also include:

  • How much each owner paid towards the property
  • What share of the property you each own
  • Payments for significant renovations
  • How much each owner is contributing towards ongoing costs for the property such as mortgage repayments or bills
  • Any third party – most commonly parents – who have contributed money towards the purchase but aren’t listed on the title deeds. Their investment in the property can be recorded on the Deed of Trust to protect their money
  • What will happen when the property is sold or if one owner wants to sell their share.

How much does a Deed of Trust cost?

It costs just £300 + VAT for Bespoke to organise a Deed of Trust for you while we are handling the conveyancing for your property purchase. Simply talk to your conveyancing team or complete the Deed of Trust Questionnaire in your Information Pack and return to us. We will take care of the rest. The Deed of Trust is only actioned and therefore liable for payment after you have exchanged on your property purchase so there is no danger of you spending money unnecessarily.

Can I get a Deed of Trust after purchasing a property?

Yes, it is possible to get a Deed of Trust drawn up after you have purchased a property but it will likely cost you more money. It would also require both parties to retrospectively agree to a Deed of Trust once you already own the property.  You would need an updated current valuation of the property that all the joint owners agree with. You can then agree the terms of the Deed of Trust and it will be legally binding from the date it is signed and witnessed. It really is better to sort out a Deed of Trust while you are buying a property.

Sounds complicated? It definitely isn’t. With Bespoke, a Deed of Trust is a simple and straightforward process. If you think this is something that you might need, speak to your conveyancing team – at Bespoke we are ready to help you every step of the way.  

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Simple steps to your new home

With Bespoke Law Services, you’re in safe hands. We’ll guide you through each stage of buying your new home, keeping things clear and simple.

1

Instruct our team

Once your offer is accepted, we’ll be your expert guide, making sure the legal side of the transaction is clear and uncomplicated. From the moment you instruct us, you’ll have the same team working for you. They’ll keep you in the loop, explaining every step in plain language and guiding you all the way through.

2

Paperwork and searches

We’ll get all the legal documents sorted, help you complete the forms and start the essential searches. These checks tell you everything you need to know about the home you’re buying, and we’ll explain what it all means extremely clearly. Your conveyancing team will also ask you to provide information about how the property is being funded.

3

Contract time

When we’ve received everything, we’ll prepare the draft contract and share it with the seller’s conveyancer. If any questions come up, we’ll work closely to clarify everything, keeping the process moving forward smoothly.

4

Sign and exchange

Once every detail is in place and everyone is happy, you’ll sign the paperwork and we’ll exchange the contracts. This is an exciting moment that makes your purchase legally binding. We understand it’s a big step, so we’ll make sure you feel completely comfortable before it happens.

5

Completion day

On the exciting day, the money is transferred and you get the keys to your new home. We’ll take care of all the final legal bits and pieces behind the scenes, so you can focus on moving in, getting settled and making the place feel like home.

Frequently asked questions

The lawful process when buying a new home is done by conveyancers, who manage all the legal paperwork involved. They handle the complexities that protect you and are trusted by lenders to ensure all legal obligations are met properly.

Our conveyancing fees typically range from £500 to £2,500, depending on your home and situation. We’ll always give you a clear, estimated quote and explain what’s included. Costs might change a little if any extra legal work comes up, but don’t worry, we’ll always let you know as early as possible, so you stay fully informed.

Most online conveyancing takes around 12 weeks, but it can vary. Things like search delays, complex chains or leasehold checks can slow things down. We’ll keep you updated every step of the way, and chase anything that’s causing a hold-up.

You’ve just found the conveyancers you need! We make the process easy, straightforward and tailored to you. No jargon, no stress – just a team that’s by your side from start to finish. It’s easy to get a quote.

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