Today’s news from Nottingham Building Society revealed that in the past five years nearly two thirds (63%) of first-time buyers bought together.
First-time buyers have been warned to know the facts about purchasing property as a couple.
Today’s news from Nottingham Building Society revealed that in the past five years nearly two thirds (63%) of first-time buyers bought together.
But Eddie Goldsmith, senior partner at Goldsmith Williams solicitors, warned couples that if they fall out keeping up with repayments could prove difficult unless protections are put in place.
He said: “Although it makes perfect sense for two people to buy property jointly they do need to understand exactly what this means.
“Lenders will expect such a couple to take on the mortgage on a joint and several basis – in law this means that either one of them are responsible for the whole of the mortgage if the other person cannot pay it.
“Buying jointly will also mean that unless there is a written agreement setting out the circumstances of what happens if they fall out then they will both be liable for debts incurred.
“On the plus side they will both be entitled to a half share of any profits if that is what they intended.”
He added: “We always advise couples buying to consider carefully whether they should be buying as tenants in common instead and have a declaration of trust as to how the property is to be dealt with in the event of separation or fallout.
“Without such an agreement the couple may find out that what they thought would happen does not and whilst this is a sensitive subject to discuss when everything is going well and all is rosy in the first flush of home owning it is an inevitable fact of modern life that couples separate and it is then that how they own the property will come under the microscope.
“Best to be safe than sorry!”
According to The Nottingham's research the biggest challenge for first-time buyers is saving for a deposit or borrowing from their family (47%), followed by finding a home they can afford (33%) and sourcing a mortgage (20%).
Average house prices in England and Wales stood at £189,901 in March according to Land Registry statistics, with prices ranging from £97,581 in the North East to £534,785 in London.
