Some Questions & Answers
How might I benefit from buying a house with other people?
Many lenders will allow second and indeed third incomes to be taken into account in calculating the amount that they will lend. This means that you should be able to purchase a property based upon your joint incomes and that a far wider range of properties will be available to you.
How do we own the property?
You will own the property as co-owners. We will set up a Deed of Trust which will detail the shares in which you will own the property. This is the legal term for our Property Owndership Agreement. It is a simple document which sets out the basis on which you will own and occupy the property and what happens if one or all of you wants to sell.
I have more deposit to put down than my friends, how would my deposit be protected?
The contributions made by each buyer will be set out within the Deed of Trust. When the property is sold the original deposit will be returned to the departing buyer in accordance with his or her original contribution. In the event of the property being sold for less, then a proportionate part of the original contribution will be repaid.
What happens if one of us wants to sell their share?
The Deed of Trusts contains a clearly defines mechanism whereby if one buyer wishes to sell his/her interest, then the remaining buyers have a period of six weeks within which to arrange additional finance either by taking out additional borrowing or re-mortgaging the property to purchase the departing buyer's share.
What happens if we all want to sell the property?
If the property is to be sold then the mechanics of sale will be governed by the Deed of Trust. The property can be placed straight on the market and on completion of the sale, after the mortgage has been paid off and the other sale expenses such as estate agent’s and legal fees paid, then the profits are shared in accordance with the agreement in the Deed of Trust.
Q & A Continued