Top legal tips for couples purchasing a home

Buying a house as a couple is an exciting time and often marks the beginning of a brand-new chapter. But there are some important, practical steps to consider before making this significant step, as Michelle Gavin, partner in Lodders’ Private Client team, explains. 

It’s not uncommon these days for couples to team up to purchase their first home. In fact, almost two thirds (62%) of mortgage completions last year were in two or more names. This is perhaps unsurprising given the increase in deposits over the last decade; in England, the average first time buyer deposit now stands at £68,154, according to the latest mortgage figures from UK Finance.

Ultimately, more people are now pooling resources, whether these are savings, income or support from family, in order to get on the property ladder together.

Buying a first home with your partner is an exciting milestone, but alongside the optimism, it’s wise to think carefully about the legal structure behind the purchase. As a couple, even if you’re entirely committed now, it’s smart to put in place protections for the future.

Joint tenants vs tenants in common

When you own a property together, you typically choose between:

• Joint tenancy, where on the death of one owner, the surviving partner automatically inherits the deceased’s share (known as “right of survivorship”)
• Tenants in common, where each person owns a distinct “beneficial share” and can leave that share to someone in their will

If you’re contributing unevenly, for instance, if one person is paying much larger mortgage payments, tenants in common may be the more appropriate option. It allows you to formalise who owns what proportion of the property’s value, and later, to leave your share to someone else if you so choose.

However, while owning a home as tenants in common is used to protect each party’s interest when buying property, many cohabiting couples likely assume being tenants in common provides certain legal protections that do not exist. To be fully protected, a separate agreement – such as a Declaration of Trust – is needed to outline how much you each brought to the table and how much you should be entitled to if you split up.

Declaration of Trust

With this in mind, one of the most important legal tools for co-buyers is a Declaration of Trust (sometimes called a “trust deed”). This document records:

• How much each partner contributed to the deposit
• Your future contributions (such as mortgage payments)
• What happens to equity when the property is sold
• Provisions in the event of separation or death

A Declaration of Trust provides complete legal clarity. Without it, unequal contributions may not be recognised; even with a shared mortgage, the law doesn’t automatically reflect financial input.

As a fictional example, imagine Alice and Ben are buying their first home for £300,000. Alice has saved £40,000, and Ben has £20,000. They agree to split mortgage payments 50/50, but Alice’s larger deposit gives her a bigger financial stake upfront. By setting up a Declaration of Trust, they agree that on sale, Alice will recover her extra deposit, rather than dividing everything equally.

Wills and estate planning

If you are unmarried, it is especially important for both of you to make separate wills. Under UK intestacy rules, cohabiting couples are not automatically entitled to inherit from one another. This means that, without a will, your share of the property could end up passing elsewhere, which may not align with your wishes. A Declaration of Trust paired with a will ensures your interests are safeguarded, and your estate is handled in the way you intend.

It may also be worth considering taking out life insurance that mirrors your mortgage liability; this helps cover the mortgage if one partner dies, protecting the survivor or other beneficiaries.

Cohabitation agreements

For couples who aren’t planning to marry but want clear, agreed legal terms from the outset, a cohabitation agreement can provide an extra layer of certainty. As a brief overview, this agreement can cover:

• How you share outgoings (mortgage, bills, repairs)
• What happens if you split up (for instance, how to divide assets)
• Rights to future property or financial gains

While a Declaration of Trust deals with property ownership itself, a cohabitation agreement helps regulate the practical day-to-day and long-term financial relationship. Read our blog on cohabitation agreements here for further information.

Future flexibility

Life can change quickly – you might get married later, inherit more money, or decide to sell and move on. Your legal arrangements should allow for that flexibility.

It’s important to note that if you marry, any existing Declaration of Trust may fall within the scope of matrimonial law, and the family courts have wide powers under the Matrimonial Causes Act 1973 to redistribute assets on divorce, including the home, according to fairness and need. This is regardless of what is recorded at the Land Registry or set out in the deed.

Because circumstances can change over time, such as shifts in income or imbalances in contributions, it’s sensible to review and update your Declaration of Trust or any cohabitation agreement to ensure they still reflect your position.

It’s equally important to revisit your wills from time to time so they remain aligned with your wishes and current life situation.

Joined-up legal advice

Given the financial and emotional stakes involved in buying a home together, expert legal advice can prove invaluable.

At Lodders, our experienced family law solicitors can help you create a Declaration of Trust that reflects your contributions, advise on the most suitable form of ownership, and prepare a cohabitation agreement where needed. Working in parallel, our Private Client team provides tailored support with wills and inheritance planning, from drafting documents to navigating more complex issues.

This joined-up approach ensures your relationship and your investment start on a clear and secure foundation. To find out how we can support you, please get in touch.