Buying and Selling Property UK 2026 — The Complete Process GuideWhat Is a Deed of Trust for Property UK — Complete Guide
What a deed of trust is, when you need one for property in the UK, how it works, costs, and what to include. Essential guide for unmarried couples and unequal contributions.
A deed of trust is one of the most important documents you can have when buying property with another person — especially if you are not married. Here is when and why you need one.
What Is a Deed of Trust?
| Detail | Information |
|---|
| Also known as | Declaration of trust, trust deed |
| What it does | Records who owns what percentage of a property |
| When it is made | Usually at the time of purchase (but can be created later) |
| Who needs one | Anyone buying with another person and contributing unequal amounts |
| Legally binding? | Yes — enforceable through the courts |
| Registered? | Can (and should) be registered at the Land Registry as a restriction |
When You Need a Deed of Trust
| Situation | Why you need it |
|---|
| Buying with a partner (unmarried) and paying unequal deposits | Protects the person who paid more |
| Parents helping with the deposit | Documents whether it is a gift or loan, and what share the parents (or their child) own |
| Buying with friends | Clarifies ownership shares and obligations |
| One person paying the mortgage while the other contributes less | Reflects actual financial contributions |
| Investing in someone else’s property | Records your financial interest |
| Protecting assets you brought into a relationship | Documents pre-existing equity |
Joint Tenants vs Tenants in Common
| Feature | Joint tenants | Tenants in common |
|---|
| Ownership shares | Equal (always 50/50 regardless of contributions) | Defined shares (can be any split) |
| Right of survivorship | Yes — if one owner dies, the other automatically inherits | No — each share passes according to their will |
| Deed of trust needed? | Less relevant (shares are equal by definition) | Essential — defines the actual ownership shares |
| Best for | Married couples who want everything to pass to the survivor | Unmarried couples, friends, investment partners |
| Severance | Can be converted to tenants in common | N/A |
Most unmarried couples buying together should be tenants in common with a deed of trust.
What a Deed of Trust Should Cover
| Section | What to include |
|---|
| Ownership shares | Each person’s percentage ownership |
| Deposit contributions | Who paid what towards the deposit |
| How shares change over time | Do mortgage payments change the shares? (Fixed shares vs floating shares) |
| Sale triggers | When can a sale be forced? What happens if one person wants to sell and the other doesn’t? |
| Running costs | Who pays the mortgage, insurance, maintenance, and what happens if one person stops paying? |
| Improvements | Does spending on improvements change ownership shares? |
| Dispute resolution | Mediation before legal action |
| Buyout provisions | Can one person buy the other out? How is the price determined? |
| Death of an owner | What happens to their share? |
Fixed Shares vs Floating Shares
| Type | How it works | Best for |
|---|
| Fixed shares | Ownership shares stay the same regardless of who pays the mortgage over time | Simple, clear, less administration |
| Floating shares | Ownership shares change as each person makes mortgage payments or contributions | Fairer if one person is paying significantly more over time |
Fixed Share Example
| Detail | Person A | Person B |
|---|
| Deposit contributed | £40,000 | £10,000 |
| Mortgage payments | Split 50/50 | Split 50/50 |
| Ownership share | 60% | 40% |
| On sale (house sells for £300,000) | £180,000 | £120,000 |
Floating Share Example
| Detail | Person A | Person B |
|---|
| Deposit contributed | £40,000 | £10,000 |
| Total mortgage paid (over 5 years) | £30,000 | £18,000 |
| Total contribution | £70,000 | £28,000 |
| Ownership share | 71.4% | 28.6% |
| On sale (house sells for £300,000, after repaying £152,000 mortgage balance) | £105,700 (71.4% of £148,000 equity) | £42,300 (28.6% of £148,000 equity) |
Floating shares are fairer but require careful record-keeping and clear tracking methods in the deed.
How to Get a Deed of Trust
Option 1: Through Your Conveyancing Solicitor
| Detail | Information |
|---|
| When | At the time of purchase — easiest and cheapest |
| Cost | £200–£500 (as part of the conveyancing process) |
| Advantages | Solicitor already has all the details, land registry restriction included |
Option 2: After Purchase
| Detail | Information |
|---|
| When | If you did not get one when you bought |
| Cost | £300–£800 |
| Process | Both parties appoint a solicitor (ideally independent solicitors), agree terms, sign the deed |
| Land Registry | Should be registered as a restriction — protects your interest |
Option 3: Online Legal Service
| Detail | Information |
|---|
| Cost | £50–£200 |
| Advantages | Cheaper, quick |
| Disadvantages | May not cover complex situations, limited personalised advice |
| Suitable for | Very simple arrangements with clear terms |
Registering at the Land Registry
| Detail | Information |
|---|
| Why register? | Puts a “restriction” on the property — prevents sale or remortgage without all parties’ consent |
| Cost | £40 (Form RX1) |
| How | Your solicitor submits the restriction to the Land Registry |
| What it prevents | The property cannot be sold, transferred, or mortgaged without the consent of all named parties |
| Is it required? | Not legally required but strongly recommended |
When Parents Help with the Deposit
| Arrangement | Deed of trust should record |
|---|
| Gift to child | That it is a gift with no repayment obligation — child’s share reflects the gift |
| Loan to child | The loan amount, repayment terms, and interest (if any) |
| Investment (parent holds an ownership share) | Parent’s percentage ownership and what happens when the property is sold |
| Gift to couple | Who the gift is intended for — one person or both |
Mortgage Lender Requirements
| Detail | Information |
|---|
| Lenders need to know about the deed of trust | It creates a beneficial interest — this must be declared |
| Impact on the mortgage? | Usually none, provided all parties agree |
| Gift vs loan | Lenders prefer gifts (no repayment affects affordability) — loans may reduce borrowing capacity |
| Gifted deposit letter | Most lenders require a letter confirming the gift with no repayment expected |
Changing or Ending a Deed of Trust
| Situation | Process |
|---|
| Both parties agree to change the terms | Create a new deed of trust or a deed of variation — both should take independent legal advice |
| Property is sold | The deed of trust governs how the proceeds are split |
| One party wants to buy the other out | Independent valuation, then follow the buyout provisions in the deed |
| Relationship breakdown (unmarried) | The deed of trust determines each person’s share — if there is a dispute, mediation then court |
| Divorce | The court can override the deed of trust as part of the financial settlement |
Costs Summary
| Item | Cost |
|---|
| Deed of trust (at purchase) | £200–£500 |
| Deed of trust (after purchase) | £300–£800 |
| Land Registry restriction (Form RX1) | £40 |
| Online template | £50–£200 |
| Independent legal advice (each party) | £150–£300 per person |
Common Mistakes
| Mistake | Consequence |
|---|
| Not getting a deed of trust at all | If you split up, you may lose money — especially if unmarried |
| Not registering at the Land Registry | Your interest is not protected against sale or remortgage |
| Not taking independent legal advice | The deed may not be enforceable if one party was not properly advised |
| Not updating after changes (e.g. one person pays off more mortgage) | Shares may not reflect reality |
| Using a joint tenants arrangement when you should be tenants in common | Your shares are forced to be 50/50 regardless of contributions |
| Not addressing what happens on death | Can cause problems with inheritance and probate |
Related guides:
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