Buying
Buying a home with a partner or friend: what to sort out first
1 min read · Updated
The short answer
When you buy with someone, you choose how you own it: as joint tenants, where you own it all together, or as tenants in common, where you each own a share. If you put in different amounts, a declaration of trust records who gets what.
Two ways to own a home together
- Joint tenants: you own the whole home together. If one of you dies, the other automatically owns it all. Common for married couples.
- Tenants in common: you each own a share, which can be unequal, like 60 and 40. Your share goes to whoever you name in your will.
This is how it works in England and Wales. Scotland and Northern Ireland have their own rules, so ask your solicitor.
Why a declaration of trust helps
If one of you puts in more for the deposit, or a parent gives one of you money, a declaration of trust records who gets what if you sell or split up. It's much easier to agree now than later, and a solicitor can draw it up for a modest fee.
The mortgage
Lenders add your incomes together, and you're both responsible for the whole mortgage, not just your half. If one can't pay, the other has to. Many lenders lend around 4.5 times your joint income.
A guide, not financial or legal advice. Rules and rates change, so check with your lender, broker or solicitor. Where our numbers come from.