Declarations of Trust

A Declaration of Trust is a legally binding document that formally records how joint owners hold their financial shares in a property. When purchasing a home with a partner, friend, or family member, contributions toward the deposit, mortgage repayments, or ongoing maintenance are rarely identical. A Declaration of Trust sets out exact ownership percentages, protects individual capital contributions, and outlines how sale proceeds will be divided if the property is sold. Drafting this agreement alongside your conveyancing transaction provides clarity from the outset and helps prevent costly legal disputes in the future.

Yes, a Declaration of Trust can be drawn up at any point during property ownership, provided all named owners agree to its terms. It is common for owners to establish an agreement after purchase if one party subsequently invests significant funds into home improvements or pays off a substantial lump sum of the mortgage. Existing trust deeds can also be varied or updated to reflect changing personal circumstances, such as shifts in financial contributions or marriage. Our conveyancing team ensures any new or amended agreement accurately reflects your current arrangement and is correctly registered.

It is increasingly common for parents or relatives to provide financial gifts or loans to help first-time buyers secure a property. A Declaration of Trust protects these family contributions by explicitly recording whether the funds are a gift or a loan, and setting out clear repayment terms upon a future sale. For instance, the deed can stipulate that a parent's initial financial deposit is ring-fenced and returned to them first before remaining proceeds are split between the joint owners. This gives contributing family members complete peace of mind while supporting loved ones onto the property ladder.