Thinking Of Buying Property With Friends Or Family?

Thinking Of Buying Property With Friends Or Family?

Buyers are discovering wiser methods to climb on the property ladder as prices continue to increase. Sharing a mortgage with friends or family is a feasible choice for many purchasers, and it’s becoming more popular among first-time home buyers who may be struggling to access the property market. Could it be the best choice for you?

Lay A Solid Foundation

We’re hearing more and more about friends or family members combining their finances to buy a home or an investment property. While pooling money makes sense for purchasers who are unable to raise a deposit or do not fulfil the income criteria, it is critical to provide a solid basis to avoid future disagreements.

Property Sharing Agreement

Before you sign on the dotted line, have your lawyer draft a property sharing agreement or a co-ownership agreement outlining crucial information such as what happens if one of you decides to sell, how much share each person has, and what costs you’re each accountable for.


When you buy a property with friends or family, you share the responsibilities that come with owning your own property, such as ongoing bills, repairs and maintenance, insurance costs, and any other financial commitments, as well as the up-front cost of buying a property – securing finance, deposit, and any taxes. These should be properly stated and agreed upon in the property sharing contract.


The effectiveness of mortgage sharing is being open and honest about crucial details. This includes discussing upcoming monthly payments and obligations, establishing limits and duties, and determining the best approach to hold each other accountable.

The Legal Implications

Before making your selection, you should carefully analyse the legal ramifications of co-ownership. If all co-owners sign the loan documents, each is jointly and severally accountable for the debts of the others. So, if one of your friends or family members fails to make their loan payments, you may be forced to make up the difference.

Unpredictable Conditions

A disagreement among family or friends is all too frequent, and it may make shared property agreements rather complicated. Finally, purchasing property with family or friends is a commercial transaction, and personal considerations should not be allowed to interfere. Consider purchasing real estate with folks who share your goals. Ascertain if they are in a position to satisfy their share of repayments and financial duties.

If you believe that buying a home with family or friends is a viable option for you, speak with us at Hayman Lawyers about your responsibilities.

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