Declaration of Trust UK: Joint Property Ownership

What this document is

A Declaration of Trust, sometimes called a Deed of Trust, is a written agreement that records the beneficial ownership of a property held in two or more names. The legal title (what appears on the Land Registry) and the beneficial interest (who actually owns the money tied up in the property) are two different things, and a Declaration of Trust is the instrument that makes the second one clear.

It is most commonly used where co-owners hold property as tenants in common, meaning each person owns a distinct share rather than the whole jointly. The shares can be fixed percentages, or they can reflect the exact amounts each person has put in, including deposits, mortgage payments and renovation costs.

The document typically sits alongside the Land Registry form that records the tenancy in common restriction. It does not change who is on the mortgage or who is registered as a proprietor, but it governs how the sale proceeds are divided when the property is eventually sold, and what happens in the meantime if one owner wants to exit, move out, or buy the other out.

How to use this document

1. Work out the ownership structure. Before you draft anything, decide whether you will hold the property as joint tenants or as tenants in common. Joint tenants own the whole together and a survivor inherits automatically. Tenants in common hold distinct shares that pass under a will. A Declaration of Trust is almost always used with the tenants in common structure, so this decision shapes everything that follows.
2. Agree each person's share and how it was calculated. Sit down with your co-owner and work out exactly what each of you is contributing to the deposit, the mortgage, legal fees, stamp duty and any planned improvements. Shares can be expressed as fixed percentages (for example 60/40) or as a formula that tracks actual contributions over time. Write down the figures you relied on so there is no argument later about what was agreed.
3. Decide what happens if one of you wants out. The Declaration should cover how a sale is triggered, how long the other owner has to buy out the departing share, and how the property will be valued if you cannot agree on a price. Pre-emption rights, giving the remaining owner first refusal, are common. Thinking about the unhappy scenarios now is much easier than negotiating them during a breakdown in the relationship.
4. Deal with the running costs and day-to-day arrangements. Mortgage payments, buildings insurance, council tax, utilities, and repair bills all need to be allocated. If one owner is paying more of the mortgage than their share suggests, that needs to be recorded, because otherwise the paying party may find they have no claim to a larger slice when the property sells. Put the arrangement in writing, even if it feels awkward.
5. Sign, date and store the Deed safely. The document should be signed by all parties and witnessed, and each owner should keep a copy with their important papers. If there is a mortgage, your lender may need to be told. The Land Registry can also be updated with a Form A restriction to reflect the tenancy in common, which puts third parties on notice that the beneficial ownership is split.

Common questions