Plan for the worst when Buddying Up on the property ladder
Home-buyers who "buddy up" with a friend or relative in order to afford their first home must factor in all worst case scenarios before buying, says Thanet’s Boys & Maughan.
Boys & Maughan, which earlier this year secured membership to the Law Society’s prestigious Conveyancing Quality Scheme, which recognises high standards in home-buying, is warning those looking to buy their first home with a friend or relative that there is more to consider. Boys & Maughan says failing to plan for all eventualities, even death, could leave you in difficulty in future.
Head of Conveyancing at Boys & Maughan, Peter Rodd says: “With home loans less accessible than a few years ago joining up with a friend or relative to buy a home is a good alternative. However, there is much more to consider when buying this way. There is a high possibility that one party to the joint ownership’s circumstances could change, so it is vital to consult your solicitor early on to cater for every possible change in circumstance.
“Sometimes a co-ownership contract might be necessary, but at the very least Boys & Maughan can highlight all the options and possible scenarios to both owners. We can also advise on the type of mortgage which might be suitable and how joint ownership fits into your estate and will. There may also be tax implications that we can advise on.
“Circumstances when buying jointly are more likely to change. If you buy with a friend and they subsequently marry or change jobs they might want to move on and not be tied down anymore by the property they jointly own with you. Or if you buy with a family member who doesn’t reside there, but who dies and leaves their share to someone else you may need to factor that into any initial agreement.
“It does sound daunting, but far from putting anyone off it is important that you seek legal advice on joint ownership. When it is difficult, as now, to raise a deposit and secure a mortgage on your own buddying up is an excellent way to get a foot on the property ladder, but it needs to be done with legal advice from a CQS accredited firm.”
Boys & Maughan underwent a rigorous application and assessment by the national Law Society to become part of CQS initiative, which recognises high quality in residential conveyancing. CQS has the support of the Council of Mortgage Lenders, the Building Societies Association, Legal Ombudsman and the Association of British Insurers.
Boys & Maughan Solicitors, India House, 11 Hawley Street, Margate, Kent CT9 1PZ Tel: 01843 234000
Boys & Maughan Solicitors, 83 Station Road, Birchington, Kent CT7 9RB Tel: 01843 842356
Boys & Maughan Solicitors, 99 High Street, Broadstairs, Kent CT10 1NQ Tel: 01843 868861
Boys & Maughan Solicitors, 57 Queen Street, Ramsgate, Kent CT11 9EJ Tel: 01843 595990
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