It appears there may be a growing trend of young, first time buyers, clubbing together in order to purchase their first homes. This seems to make sense really, given the current difficulties to even find a lender, let alone obtain a mortgage offer.
A recent article in a national newspaper included a fairly comprehensive list of those Banks and Building Societies prepared to offer multiple borrower mortgages, most seemed prepared to extend the offer to a maximum of 4 applicants.
However, caution should be taken. Entering into such a commitment even with some of your closest friends could result in fall out!
Praveen Chaudhari, solicitor and property specialist with Shropshire law firm Lanyon Bowdler, suggests a Declaration of Trust would need to be carefully drawn up by a lawyer. He says, "There are a multitude of considerations here; for example is everyone contributing equally to the cost of purchasing the property? What would happen in the event one person invests both time and money on improvements to the property? What if one or more want to sell but others do not?"
He goes on to explain, "With the correct legal advice, and a properly drawn up document, all these questions and scenarios can be discussed and agreed, the group of friends can then be confident that all their legal interests are looked after and enjoy their new home."
About Lanyon Bowdler Solicitors
Lanyon Bowdler is one of Shropshire's largest law firms with 14 partners and over 150 experienced staff. The firm has five offices in Wellington, Ludlow, Telford Town Centre, Telford Central Park and Shrewsbury at Abbey Lawn Business Park.
Lanyon Bowdler is a multi-disciplinary law firm that specializes in all aspects of the law.
Web site: www.lblaw.co.uk
Contacts: Amanda Jones at Lanyon Bowdler 01952 224046 firstname.lastname@example.org
Member since: 10th July 2012
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