Should you buddy up to buy a home? Here’s what you need to consider…
Getting a foot onto the property ladder can be tough, whether you are an individual looking to buy your first home or a couple, it can seem almost impossible funding a first property purchase.
This recent article in This Is Money highlights the fact that many first-time buyers are “buddying up” when it comes to taking out a mortgage on a first home.
“It’s not just young couples who are committing to mortgages outside of marriage – buying with friends or siblings is becoming an increasingly popular option for aspiring homeowners, according to research from M&S Bank.”
There are however, some obvious pitfalls when it comes to purchasing a property with friends, family or a partner as the financial responsibility is not always equal between all parties.
Factors such as how much of the deposit will be paid by one or more person? is an important consideration and what happens if one owner wishes to sell but the other doesn’t?
Buying a home may be one of the single largest investments you will ever make, so it is wise to really consider the risks associated with “buddying up” before comitting to a purchase. However as the article outlines there are measures you can take to protect your share of the investment from the outset, one of which is signing a declaration of trust.
“Taking measures such as signing a ‘declaration of trust’ can help ensure you and your co-buyers get back what you put in when it comes time to sell the property – or protect you in the event that your co-owner dies.”
If you are considering a joint property purchase but are not sure if this is the right option for you, then seeking professional advice should be the next step. Speaking to a qualified mortgage advisor can help you to fully understand the pros and cons as well as how the process works.
How we can help?
At Middleton Estates we are proud to work alongside trusted, local mortgage advisors who can help you to understand your options for purchasing a home and we are always happy to point you in the right direction to ensure that you receive best advice.
If you would like to find out more about who we work with or you are looking to buy, sell, let or rent a home- please get in touch today for a no-obligation chat with a member of the team.
Tom Middleton- Managing Director