New survey reveals that the majority of homeowners in the UK don’t have any legal documentation in place to protect their investment in the event of a breakup
The UK’s leading home-buying company, We Buy Any Home, has released findings that show that the majority of homeowners in the UK don’t have any legal documentation in place to protect their investment in the event of a relationship breakdown.
As first-time home buying becomes more of a struggle for the younger generation, and with people either choosing not to marry, marrying later in life or getting a divorce, it’s vital that people protect themselves.
In a survey of 1,500 people who have purchased homes with their partners, over half (53%) of respondents indicated they have no legal documentation, such as a Declaration of Trust, in place to protect their investment in case of a breakup. Alarmingly, this figure rises to 62% among those whose partner paid the entire deposit.
The survey also highlights that nearly half (46%) reported paying an unequal share of the deposit. This discrepancy underscores the importance of legal documentation to safeguard investments in the event of a relationship breakdown.
12% of homeowners are unsure whether they have any legal protection, leaving a worrying 65% either without documentation or uncertain about their legal standing.
Liverpool and Leeds lead the list of cities where homeowners are most likely to lack legal documentation, both at 63%. In contrast, London tops the list of cities where homeowners are most legally protected, with 48% confirming they have documentation in place.
The findings also indicate that the age group most likely to have paid an unequal share of the deposit is 25-34 year olds, with 62% indicating a disproportionate contribution, highlighting the struggles for some people to buy their first home. In contrast, the 65 and over age group is the most likely to have paid an equal share, with 69% reporting a 50/50 split, with house prices having been lower in the past.
Regionally, the data reveals significant variations across the UK:
- Couples in Norwich are most likely to have paid an equal share of the deposit, with 68% of respondents reporting a 50/50 split.
- Cardiff and Nottingham follow closely behind with 63% and 60% respectively.
- London sits at the lower end, with only 46% of couples having paid an equal share of the deposit.
Terry Fisher, property expert at We Buy Any Home, commented on the findings:
“It’s concerning to see such a high number of homeowners lacking legal protection, particularly among those who have made significant financial contributions to their property. Legal documentation such as a Declaration of Trust is essential to ensure fair treatment in the event of a relationship breakdown. It’s crucial for couples to prioritise these protections to avoid potential financial distress later on.
“We’re seeing less people choose to get married, and more relationships breaking down, which means that new homeowners should consider working with an advisor to create a legal document that outlines how money would be split in the event of a breakup.”
The survey’s findings highlight the need for greater awareness and action to ensure equitable contributions and legal safeguards when purchasing a home with a partner.
We Buy Any Home urges couples to take proactive steps in securing their financial future and protecting their investments. If any couples find themselves in the situation where they need to sell their home fast, then We Buy Any Home is on hand to make the process easier.
The post UK Homeowners at Risk: Majority Lack Legal Protection for Investments Post-breakup appeared first on Property & Development Magazine.