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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3756
Experience:  Solicitors 2 years plus PQE
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ThereMy partner took out a loan to fund a deposit to

Customer Question

Hi there
My partner took out a loan to fund a deposit to buy a house. The house is mortgaged in my name only but we both reside at the property.
We want to draw up an agreement that says if we split up we're jointly and severally responsible for the loan. Also that in the event we split up we each have a 50% interest in the property equity, less the first £10,00 which my partner invested privately.
What is the best way to get this drawn up in a legal contract please?
Many thanks
Nick
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
WHat you need to prepare to deal with the ownership issues is what is known as a "Deed of Trust". This is a document between two cohabiting people to determine how to split the equity in the property.
In relation to the loan "joint and several" liability is something you agree with the lender. This means the lender can pursue you both jointly or individual for the whole debt. If you were joint and severally liable the lender could sue you personally for the whole debt? Do you mean that you want to take responsibility for half of the loan?
I look forward to hearing from you.
Kind regards
AJ
Customer: replied 2 years ago.

Hello AJ

Thank you for your answer. The loan is taken out with the lender in my partners name only. Yes I would like to take responsibility for half of the loan.

Are you able to assist with preparing the Deed of Trust and how much would this costs please?

Many thanks
Nick

Expert:  Alex J. replied 2 years ago.

Hi, Thank you. What you need to do is write into the document just a contractual obligation that you will repay your partner £5,000 (or half the balance) in the event that the loan is called in. We cannot draft documents on this site - however the document you are after is very common and straight forward. I would estimate it should cost at most £250 plus VAT at a local solicitor. If you contact the Law Society www.lawsociety.org.uk they will be able to recommend a solicitor locally to you. The reason why you need a firm of solicitors to do this is because they have indemnity insurance which you can claim against if anything with the paper work goes wrong. I look forward to hearing from you. Kind regards AJ