Property Sharing Agreement


A property sharing agreement is a legally binding agreement you and others draw up together when you are sharing a mortgage. Share a Mortgage's unique property sharing agreement is called Shared Ownership Protection.

It protects everyone's individual interests in a property when sharing together.

You all select rules and procedures that you all agree to follow and these are to ensure that you have a harmonious relationship while sharing. Agreements can be drawn up both for when you are actually living together or for when you are sharing the ownership of a buy to let property.

Central to the agreement is a declaration of trust and optionally, relevant to people living together, a cohabitation agreement .

Get your Property Sharing Agreement   - call us on 0333 344 3234.

Who is a property sharing agreement suited to?

The agreement is needed by anyone who is or intends to share a mortgage with one or more people as tenants in common (with uneven shares in the property):

  • Married people or those in a civil partnership;
  • Partners;
  • Family members; and
  • Friends

The sharers may have bought the property to live in themselves or to let it out to others (buy to let).

What's the point of the agreement?

The main point is the declaration of trust element. It gives direction on how to work out anyone's individual share of ownership, consisting of deposit and mortgage repayment contributions, so they can know what this is at any point during a share.

It is rare to buy a property where everything is 100% equally shared. One person may have a larger deposit but contribute less towards monthly mortgage repayments (larger savings, lesser income perhaps) whereas another may have much less deposit funds but, because of a much larger income, makes much higher monthly mortgage repayments. Each individual co-buying set-up will be different but the financial matters will centre on initial deposit contributions and subsequent mortgage repyaments.

The property sharing agreement sets out these arrangements fully and they are all taken into consideration when calculating your share of sale proceeds. Even when buying with your partner you'll value having this all documented should your relationship break down.

Additionally it sets down how anyone can leave the property in a variety of circumstances and can include, for example, how long you intend to share the property for. This is normally at least until the early repayment charging period on a mortgage has expired.

You can add in more complexities with a  cohabitation agreement element which sets down pre-agreed house rules and an inventory of your possessions. Each agreement is potentially unique because a house share can be conducted in many different ways. Some people like dogs, for example, and can tolerate dogs being part of a home; others do not like them and cannot.  

Property Sharing Agreement

Will a property sharing agreement stand up in court?

Shared Ownership Protection, Share a Mortgage's property sharing agreement, has been drafted by lawyers to provide legal support to home buyers who use it.  

The terms in the property sharing agreement are mutually agreed by all parties buying the property and then the document is executed and forms the contract of understanding between all the parties. 

The property sharing agreement is a legal document and is used by the property sharers to resolve future dispute between them; however because potential issues have already been discussed and principles agreed, then the potential for disputes is vastly reduced.

Why should I get a property sharing agreement?

  • The money you've invested in a property is clearly and legally recorded;
  • You have clear strategies in place for dealing with the sharing relationship breaking down;
  • You know how you can leave the share in an emergency situation;
  • You have the option to agree house or sharing rules for your greater satisfaction; and
  • You can use the agreement as material evidence in a Court of Law in a legal dispute.

How can I get a property sharing agreement?

Click on Shared Ownership Protection to order your bespoke property sharing agreement.

If you have any questions about property sharing agreements, our advisors will answer them. Simply call us on 0333 344 3234 or email us at