Declaration of trust: what it is, what it costs and when you need one
6 min read
A declaration of trust is the document that records who really owns what share of a property in England and Wales — and it is the single most useful thing an unmarried couple can sign when buying together.
In short
- It is a written record of the beneficial ownership of a property, separate from the legal title.
- It is the standard way to protect an unequal deposit.
- Typical solicitor cost is roughly £300–£800 plus VAT for a straightforward one.
- It should be signed at or before completion, and paired with a Form A restriction at HM Land Registry.
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Legal title versus beneficial ownership
In English property law two things can be true at once: you are both registered on the legal title at HM Land Registry, and yet the underlying, beneficial ownership is split 70/30. The legal title says who can sell the property. The beneficial interest says who gets the money.
A declaration of trust (sometimes called a deed of trust) is the document that fixes the beneficial split in writing. Without it, the default assumption for joint owners who have not said otherwise is a straight 50/50 split of the proceeds.
What it should cover
A good declaration of trust does more than state two percentages. It should answer what happens in the situations that actually arise.
- The share each of you owns, or a formula (for example: deposits returned first, remaining equity split 50/50).
- How the deposit is treated — as a share, as a loan repayable on sale, or partly as a gift.
- Who pays the mortgage, the bills and the maintenance, and whether those payments change the shares.
- How major renovations funded by one party are credited.
- What happens if one of you wants to sell and the other does not, including a right of first refusal to buy the other out.
- How the property is valued on a buy-out.
What it costs
A straightforward declaration of trust drawn up alongside a purchase typically costs in the region of £300 to £800 plus VAT. Complex arrangements — parental contributions, a business interest, a staged buy-out — cost more, often £800 to £1,500 plus VAT.
Set that against the cost of a contested trust of land claim under TOLATA, which routinely runs into tens of thousands of pounds. The document is cheap insurance.
Joint tenants or tenants in common
A declaration of trust only works if you hold the property as tenants in common, not as joint tenants. Joint tenants own the whole thing together in undivided shares, and on death the property passes automatically to the survivor.
If you want unequal shares, tell your conveyancer you are buying as tenants in common. They will enter a Form A restriction on the register, which flags that the property is held on trust and that a sole survivor cannot sell without appointing a second trustee.
Keeping it up to date
The most common failure is not the absence of a document but a document that stopped being true. One partner pays for a new roof, or covers the mortgage alone for a year during parental leave, and the 60/40 split on paper no longer reflects reality.
Either record contributions as you go and vary the deed when something significant changes, or write the deed as a formula that updates itself from documented contributions. This is exactly what cohab is built to keep track of.
Frequently asked questions
Is a declaration of trust legally binding?
Yes. To be effective for land it must be in writing and signed by the parties, in line with section 53(1)(b) of the Law of Property Act 1925. A properly executed deed will be upheld by the courts and is very hard to go behind.
Can we write one ourselves?
You can, and a clear written record is much better than nothing. But because it deals with land and is meant to survive a dispute, it is worth having a solicitor draft or review it — badly drafted deeds are the ones that end up litigated.
Does the mortgage lender need to agree?
The lender's charge takes priority regardless of your internal split, so the lender does not normally need to approve the declaration. Being on the mortgage and owning a share are separate questions.
Can we change it later?
Yes, by signing a deed of variation. Do this whenever the balance of contributions changes materially, rather than relying on an informal understanding.
This guide describes the position in England and Wales. Scotland uses different mechanisms — a survivorship destination or a minute of agreement.
This guide is general information, not legal advice. Rules differ between countries — consult a local professional for your situation.
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