Buying a home is one of the biggest financial decisions you will ever make. Whether you are purchasing with a partner, friend, or with help from family, it’s essential to protect everyone’s contributions and avoid disputes in the future.

A Declaration of Trust—also known as a Deed of Trust—is a legal document that sets out exactly who owns what share of a property and what should happen if circumstances change. It ensures clarity, fairness, and legal protection for all parties involved.

Property transactions rarely involve clear 50/50 contributions. Deposits, mortgage repayments, and ongoing bills are often split unequally, or supported by outside help (such as bank of mum and dad). A Declaration of Trust records these arrangements in writing.

Without one, disputes can arise over who is entitled to what when:

• The property is sold.

• One party wants to be bought out.

• Relationships break down.

• Extra contributions are made to the mortgage or home improvements.

In short, it protects both your financial investment and your future security.

• Protection for unmarried couples – Unlike married couples, cohabiting partners do not have automatic financial protections if they separate. A Declaration of Trust clearly records who is entitled to what.

• Security for family contributions – Parents or relatives helping with a deposit can safeguard their investment.

• Clarity for future sales – Avoids disputes by setting out how sale proceeds will be divided.

• Peace of mind – Ensures transparency and reduces the risk of costly legal battles.

Every deed should be tailored to the specific circumstances, but most will include:

• The amount each party contributed to the deposit.

• How mortgage repayments and other outgoings will be shared.

• The percentage of ownership each party holds.

• How sale proceeds will be divided.

• An agreed process for valuing the property.

• Provisions for what happens if one party makes additional investments (e.g., renovations).

For example:

• If one person provides a larger deposit, they can receive that amount back first on sale, plus a share of any profit.

• If one person contributes less upfront but more towards the mortgage, the deed can be structured so their share grows over time.

How you hold the property affects how your Declaration of Trust works:

• Joint Tenants – Both parties own the property equally. If one dies, the other automatically inherits their share. However, you may still want a Declaration of Trust to record who contributed what.

• Tenants in Common – Each party owns a defined share (e.g., 70/30). These shares can be passed on through a will. A Declaration of Trust clearly documents these ownership proportions.

You should strongly consider one if:

• You are buying with a partner, friend, or relative and contributions are unequal.

• You have received help from the Bank of Mum and Dad.

• You are an unmarried couple buying property together.

• You are moving into a property owned by your partner but are contributing to repayments or bills.

• You plan to invest in renovations or pay off a larger share of the mortgage.

Yes. Circumstances change, and your deed should reflect that. Updates can be made in two ways:

• Deed of Variation – amends specific clauses in your existing deed.

• New Declaration of Trust – replaces the old agreement entirely.

Changes are common when:

• One party invests in renovations.

• A co-owner is bought out.

• Family members want to withdraw or adjust their stake.

If you later marry, your Declaration of Trust may not be fully binding under the Matrimonial Causes Act 1973. Courts can redistribute assets on divorce. However, the deed is still valuable evidence of your intentions. To provide additional protection, many couples choose to make a pre-nuptial or post-nuptial agreement.

At Manak Solicitors, our fees for preparing a Declaration of Trust start from £450 + VAT. This small investment can save you from disputes and significant legal costs later on.

Compared to the potential risk of losing your investment—or facing a lengthy court battle—the cost is minimal.

With cohabiting couples now one of the fastest-growing family types in the UK, there are ongoing discussions in Parliament (such as the Cohabitation Rights Bill) to improve protections. Until changes are enacted, however, a Declaration of Trust remains the most reliable way to safeguard contributions.

As experienced residential property solicitors, we provide:

• Tailored advice based on your unique circumstances.

• Clear, efficient drafting of Declarations of Trust.

• Guidance at every stage of your property purchase or refinancing.

We understand that buying a home is an exciting step—but also one of the most financially significant. Our role is to make sure your investment is protected and your intentions are crystal clear.

Get in touch with us today to discuss how we can help you create a Declaration of Trust that suits your needs.