with a friend

Buying a home with a friend

High property prices and hefty deposits meant, for many first-time buyers, putting off the dream of owning their first home. But here is an idea – why not to join forces with a friend or two to get your foot on the property ladder?

That’s exactly what more and more young professionals are doing.

Soaring property prices and stagnant wages meant that just over a quarter of those aged between their mid-twenties and mid-thirties can manage to own their own places.

For the vast majority buying a home with a friend would be preferable to renting a place or keep living with their parents for years to come.

It may take many years saving up for a 10% deposit and then one needs to prove its capacity to do the payments on a mortgage for many years after.

Joining forces with a friend or two may mean you can start packing your things now. This also means that you may be able to afford a much nicer place too.

Although the process of buying a property with friends is practically the same as it would be for a married couple, there are a number of things that need to be considered.

The buying process

The process is practically the same. Lenders will consider a couple of friends the same way as a couple who are partners. Each buyer will still have to pass the same affordability checks to get a mortgage. Most lenders will consider up to four people be registered as a co-owner of a property.

“Deed of trust”

Although not mandatory, when buying a property with a friend, it is recommended that you organize a “deed of trust”.

Agreeing things verbally may work wonderfully. But things may change and it is better to deal with any possible future eventualities from the outset than having to deal with it later under not so favorable circumstances.

So, in the “deed of trust” you may specify what will happen for example if someone wanted to move their partner in, or wants to sell up earlier than planned, what are the responsibilities of each person and so on.

“Tenant in common”

Normally, a married couple buys a property as “joint tenants”. This means that if one of them dies, the property will automatically pass to the other.

With friends, however, it’s recommended that they buy as “tenants in common” instead. That means that their share of the property will pass to their next of kin if either was to die.

Buying a property with a friend may be a great idea but not an option for many.

Remember that property prices abroad may be a lot more affordable. Also, buying abroad may be a great opportunity to step on the property ladder for a fraction of the price you would pay at home.

In fact the money you have saved for a deposit may be already enough to buy a property outright in another country in Europe.

If you don’t believe, check this out:


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