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Joshua
Joshua, Lawyer
Category: Property Law
Satisfied Customers: 26069
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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Declaration of Trust

Customer Question

Declaration of Trust
Good afternoon, I hope you can help
My partner and I are purchasing a property for £630k.
A is putting in £270 of equity and B is putting in £90k
The mortgage of £270k is going to be paid off equally over the next 14 years.
How should the Declaration of Trust be worded?
If the mortgage is paid off after 14 years the split would be 64.28% to A and 35.72% to B.
At the beginning the split is 75% to A and 25% to B
As the mortgage is paid off there is a sliding scale moving to B' s favour.
How should this be worded? A calculation would need to be made at the point of death related to how much of the mortgage had been paid back
Hope you can help
Amanda and Ben (yes A and B 😊)
Submitted: 2 years ago.
Category: Property Law
Expert:  Joshua replied 2 years ago.

Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.

There are three principal options: the first if you propose to contibute towards the property equally is that you provide that each of you are entitled to the return of your capital and then split any profit 50/50.

Or you can convert your contributions into percentages and provide that each of you are entitled to that percentage - this would require uneual contributions to the mortgage or it would be unfair to the smaller contributor.

Finally if you want to provide for total flexibility and fairness you could provide for a floating shares trust which does not fix shares but rahter provides for how your shares are calculated based on contributions to ensure both parties benefit from what they put in.

Any declaration of trust should be professional drafted as a deed or it may be invalid. The former two are simple to prepare, the latter is more complex and would be more expensive to draft.

A solicitor should be able to provide for the first two options in a deed for around £125-200 + VAT and the latter for around £200-300 + VAT.

Alternatively I can prepare a draft you can use for £70 for the former two options or £125 for the latter if you prefer.

Please let me know if I can assist you in further with the above.

Customer: replied 2 years ago.
Hello Joshua
Thank you for your feedback
We would like you to draft a floating shares trust for us based on the above information. At a cost of £125.
Kind regards
Amanda and Ben
Expert:  Joshua replied 2 years ago.
Ben and AmandaMany thanks for the above. I would be delighted to prepare a draft you can use. I will create something called an "additional services offer". Please note that although I am based in England, the site is US owned and so I must denominate in US dollars so the balance may not be exactly £125 depending on currency exchange rates. The offer should appear in a few moments. Once accepted we will exchange email contact information so you can provide me with the information I need confidentially to prepare the document. I look forward to hearing from you.
Customer: replied 2 years ago.
Hello Joshua
Am I waiting for something to respond to?
Amanda
Expert:  Joshua replied 2 years ago.
Amanda. Thanks for your post. I have sent an additional services offer which should appear on the page for you to accept. I will send it again in case the first offer did not come through.
Customer: replied 2 years ago.
Hello Joshua
I can't see anything on the page?
Amanda
Expert:  Joshua replied 2 years ago.
I am sorry if there are any technical difficulties - it is supposed to be very straightforward. The offer may also be available from your customer home page. If not, may I ask customer services to contact you to assist in completing the transaction? As soon as that is done we can exchange contact details so you can provide me with the information I need to complete a draft which can be completed directly via email. Would you let me know?
Customer: replied 2 years ago.
Hello Joshua
Happy for customer services to contact me
Will your draft be a legal document we can use?
Amanda
Expert:  Joshua replied 2 years ago.
Thanks I will ask customer services to contact you. Yes the document will be a formal trust deed that is enforceable at law. I look forward to hearing from you once customer services have been in touch - usually they will contact you in less than 24 hours.
Joshua and other Property Law Specialists are ready to help you
Expert:  Joshua replied 2 years ago.
Many thanks. My email should be visible - if not you may have to refresh the page. If you could drop me an email I can ask you for the information I need. I look forward to hearing from you.