If you are thinking of buying a property, you might be thinking about buying it with friends to share the cost; after all, this can be a great way to get on the property ladder. Let’s take a look at how many people can legally own a property.
What the law says about buying a property with friends
As with all areas of law, this question can quickly become complex and requires specialist advice from a legal firm such as https://www.parachutelaw.co.uk/deed-of-trust to formalise your arrangement.
Only four people can legally own a property or land together.If there are more than four people named on the tenancy agreement, conveyance, or declaration of trust, the first four people named become the legal owners, with the property held on trust for themselves and the other people listed.
Right to remain in the home
It is also important to know that joint owners retain their legal right to remain in their home unless there is a court order in place that rules otherwise. This means decisions relating to any sale of the property must be agreed upon by all parties named. If one owner wishes to sell the property or take a mortgage against the property, all owners must agree formally. Again, only a court order can rule otherwise and force a different result.
What are the benefits of buying together?
With legal assistance and advice, it often makes sense to buy together with other people in certain circumstances, especially with the cost of properties rising so high. By doing this, you can have a bigger house deposit, secure a bigger mortgage, and get your feet on the housing ladder at a time when solo buying can feel almost impossible.
To make the arrangement successful, you should have a shared account for home repairs and purchases, write agreements down, have a will, and obtain legal advice. This will help to keep the arrangement clear-cut and legally supported and let you simply enjoy your new home and experience of cohabiting with similarly-minded housemates.