How to protect your interest when buying property with your partner

Buying a home with your partner is often seen as an exciting milestone in your relationship – but it’s also one that comes with important legal and financial considerations, particularly if you’re not currently married or in a civil partnership.

As such, taking the necessary precautions to ensuring your interest in the property is protected is essential to confirming your investment is properly recognised under the law, as well as minimising any potential disputes down the line.

Why protecting your interest matters

In England and Wales, the way a property is owned can significantly affect your rights if the relationship ends or if one party passes away.

And crucially – unlike married couples or civil partners – couples living together do not have automatic legal rights to each other’s property, regardless of how long you’ve been together or whether you share children.

Four key steps to protecting your interest

Decide the right ownership arrangement for your needs

There are two main ways of joint property ownership in England and Wales , which are as follows:

• Joint Tenants – under this arrangement, both parties have equal ownership of the property. Should one of you pass away, the property automatically passes to the other (known as ‘right of survivorship’) – this is often a suitable route if you’re both contributing equally and want equal rights to the home
• Tenants in Common – here, each person owns a specific share of the property, which can be equal or unequal depending on your situation. This is typically chosen if one person is contributing more to the purchase price, deposit or mortgage repayments

For example, if you’re contributing a larger deposit at the outset, you may want to agree to own 70% of the property, while your partner owns the remaining 30%.

Your solicitor will be able to help register your ownership shares with the Land Registry and ensure they reflect your original agreement.

Draw up a Declaration of Trust

A Declaration of Trust (also known as a ‘Deed of Trust’) is a legally binding document that sets out how the property is owned, as well as what should happen if you separate or sell the property.

The declaration can include details such as:

• The percentage each party owns
• How much each person has contributed to the deposit
• What happens to the proceeds if the property is sold
• How ongoing costs (e.g. mortgage or maintenance) will be shared

This document provides clarity and protects both parties in the event of a future dispute.

Consider a Cohabitation Agreement

While a Declaration of Trust covers the property itself, a Cohabitation Agreement can help to provide further context.

This agreement typically outlines how you and your partner will manage finances when living together and set out what should happen if the relationship breaks down.

It can contain details such as the following:

• Property ownership
• Household expenses
• Contributions to mortgage and bills
• What happens to pets, vehicles or other shared assets

Note: a Cohabitation Agreement must be drafted properly and both parties should seek independent legal advice to ensure it’s enforceable.

Update your Will

If you’re not married, your partner won’t automatically inherit your share of the property when you die – that is, unless you’ve made a valid Will specifying this agreement.

As such, it’s helpful to make sure your Will reflects your wishes and is kept up to date.

How we can help

If you’re thinking about buying a property with your partner and want to ensure your investment is protected, our experienced Family solicitors can help you put the right legal safeguards in place.

Get in touch with our dedicated Divorce and Family Law team on 03333 058375, or by email via family@psg-law.co.uk, for personalised guidance on securing your interest.