Pooling deposits and income to buy a property can offer huge benefits as competition for flats and houses for sale in
Chiswick, increases in 2014.
Buying jointly requires a lot of trust, transparency and above all good planning. Drawing up a formal legal agreement is one way to give all parties a degree of security, but ultimately taking the time to make a carefully considered decision is the best precaution you can take.
The latest National Association of Estate Agents (NAEA)
market report shows that the number of house hunters registering is at its highest level since 2007.
However, the decision to buy with another has to be taken objectively, and in the right circumstances. Even buying with a family member can pose problems if you are not wholly agreed on your intentions for the property. Here are some top tips.
Have realistic expectations – If you are buying with a friend it is important to remember that circumstances like jobs, relationships and family can change very quickly, so always be honest when outlining your reasons for buying together. Purchasing in this way should be treated as dispassionately as possible.
Make sure you know whether the purchase is an investment for both parties. If so, agree your preferred timeframe until resale and an acceptable level of profit. Always consult with an
NAEA member such as OliverFinn for advice about
property trends in Chiswick.
What’s the worst that could happen? – One of the benefits of buying with longstanding friends or family should be an inherent level of mutual trust. However, this doesn’t mean it isn’t worth consulting lawyers about a legally binding co-ownership contract and agreeing in advance what will happen if one owner’s circumstances change.
In for a penny – There are mortgages that are specifically geared towards this type of purchase, so shop around for the best deal. Your combined income may make it possible to secure a mortgage of higher value, giving you a wider choice.
Always leave a paper trail – All paperwork relating to the property or mortgage must be in the names of the co-buyers. Any agreements should be written down to ensure a record of joint decisions. Make copies of all documents associated with the purchase so they are readily accessible to both parties.
When what’s mine isn’t actually yours – As well as any legal agreement
, drawing up a comprehensive list of non-shared items or other costs at the start of the shared ownership can reduce confusion if a property is sold at a later date. This is also useful if one party decides to move out whilst retaining their share.
