Deed of trust – flexible written agreement

Because circumstances change.

Helping someone to buy a property

A declaration of trust is a convenient way of recording how the equity in a property is shared without affecting the legal ownership or mortgage.

Helping a child or family member with a deposit or money for an extension is on the increase, with nearly 60% of all first time buyers needing financial assistance.

59% of first time buyers received help with a deposit from family or friends.

27% of all buyers received help with a deposit.

Help towards deposits totalled £5.7 billion.

The average deposit was £20,000.

If you’re helping a child, friend or other family member to buy or renovate their home, learn more first about how a declaration of trust can be of use.


Gifting a deposit.

A mortgage lender will usually ask for proof of the source of a deposit.

It’s also now common for lenders to require anyone providing deposit monies to a child, relative or friend to sign a statement to say that this is a gift rather than a loan.

Mortgage lenders have to follow strict rules and loan affordability is key. If a borrower has borrowed the deposit as well in can affect lending limits

This isn’t ideal for a lot of people and a deed of trust can help clear up a lot of concern for the borrower and their family.

It is possible, for example, to adjust the beneficial ownership of the property between two legal owners, so that the gifted money benefits one more than the other.

It is also possible to agree to give the money back in certain circumstances in the future as long as this does not affect the legal title or mortgage.

Care must be taken not to breach any terms on which the mortgage is being made available.

Gifted deposit

Click below to see a worked example of how a deed of trust can help.


Loan of all or part of a deposit.

For people who aren’t required to sign a statement to say that their contribution is a gift, the situation is less complicated.

A deed of trust will protect their interest until the money can be repaid.

The trust deed will set out when the money needs to be paid back and what should happen in a variety of circumstances, but most often:

if the house is sold before that deadline;

if the legal owner(s) die;

if there are two legal owners and they split up or get married; and

if the mortgage can’t be paid for any reason and the property is repossessed.

Loaned deposit

Click below to see a worked example of how a deed of trust can help.

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If you would like to know more about how we can help with a deed of trust, fill in the short form below and we will come back to you.

Contact me about a deed of trust

Contact me about a deed of trust

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Property details

Is the property in England or Wales?

It is only possible to create a deed of trust when all of the owners agree to it.

The areas you will need to agree on are:

  1. How much the property is worth;
  2. How much is currently outstanding on any mortgage (if you are in the process of buying the property this will be the amount that is being drawn down on completion day plus any penalties for early repayment etc.);
  3. How much each owner/person involved with the agreement, has paid towards the deposit and other purchase costs – stamp duty, legal fees and so on;
  4. Who is going to live in the property;
  5. Who is initially going to pay the mortgage and the bills (or in what shares);
  6. How long you want the agreement to last.
Do all the owners/people involved with this agreement, agree on the points listed above?
Do you consent to being contacted by email to arrange a free consultation?

Nicola is happy to announce that she will be joining Taylor Rose MW on 12th July 2022 as a consultant solicitor