Written by Fatima Patel, Associate Solicitor · SRA-regulated · Last reviewed 21 October 2026
Short answer: A declaration of trust is a legal document that records who owns what share of a property, and what happens to the money if it is sold or one owner wants out. It is particularly important if you are buying property with someone you are not married to, if one of you put in a bigger deposit, or if a parent is helping with the purchase. It is best made before you complete the purchase, but it can be made afterwards.
Expert Legal Commentary From Our Solicitors:
“A couple separated several years after buying their home and became embroiled in a costly disagreement over ownership shares, as one party claimed to have contributed the entire deposit while the other argued they were entitled to an equal share. A properly drafted Declaration of Trust would have recorded the parties’ intentions from the outset and helped avoid significant uncertainty and legal expense.” – Fatima Patel, Associate
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Legal Ownership and Beneficial Ownership
The names on the Land Registry title show who legally owns a property. The beneficial owners are the people entitled to its value. When two or more people buy together, they choose how to hold the beneficial interest:
- Joint tenants own the whole property together. Each is treated as owning it equally, and if one dies their interest passes automatically to the survivor.
- Tenants in common each own a defined share, which can be unequal, such as 70:30. Each share passes under that owner’s Will.
A declaration of trust sets out those shares in detail, along with the conditions the owners have agreed.
When You Should Consider One
- Unmarried couples: Cohabiting partners have no automatic rights to each other’s property if they separate. Without clear evidence, sorting out who owns what can lead to expensive court proceedings. See our guide to family law reform in 2026.
- Unequal deposits: If one of you put in £50,000 and the other £10,000, a declaration can make sure each gets their deposit back before the rest is shared.
- Friends or siblings buying together: It sets out who pays what, and what happens if one wants to sell.
- Parents helping a child to buy: It can record whether the money is a gift or gives the parent a share. Check this with the mortgage lender first: lenders often require a letter confirming a deposit is a gift with no strings attached.
- Buy-to-let investors: Buying with others.
- One person on the title but another contributing: A declaration can protect someone who is not a legal owner but has paid towards the property.
What a Declaration of Trust Usually Covers
- Each person’s share, either as a percentage or as a formula.
- How the deposit and any capital contributions are repaid first.
- Who pays the mortgage, and what happens if someone stops paying.
- Who pays for repairs and improvements, and whether that changes the shares.
- What happens if one person wants to sell or move out, including a right for the other to buy them out.
- How the property will be valued.
- How disagreements will be resolved.
Why the Courts Take It Seriously
Where there is no written declaration, the courts have to work out what the owners intended from everything they said and did, which can be uncertain and costly. The House of Lords and Supreme Court addressed this in Stack v Dowden and Jones v Kernott.
Where there is a properly made declaration of trust, the courts will generally treat it as conclusive, unless it was obtained by fraud or mistake, or has been varied by a later agreement.
Married couples and civil partners: if you divorce or dissolve your partnership, the family court can make orders that depart from a declaration of trust. It will still be considered, but a prenuptial agreement may also be needed.
Before or After the Purchase?
Ideally before. The terms can be agreed during the conveyancing, signed before completion and dated on the completion day, when everyone is still in agreement. A declaration can be made after the purchase, but everyone must agree to it, and changing ownership shares later can have tax consequences, so take advice first.
How It Is Made
A declaration of trust is made as a deed, signed by each person and witnessed. If the owners hold as tenants in common, the Land Registry records a restriction on the title so that the property cannot be sold without the proper steps being taken. Someone who is not on the title can apply for a restriction to protect their interest.
On tax: married couples and civil partners who own property in unequal shares can ask HMRC to tax rental income according to their actual shares, which requires evidence of the unequal ownership. If you require further tax advice, we suggest you speak to a tax adviser about your position.
Frequently Asked Questions / Questions & Answers
Is a declaration of trust legally binding? Yes. A properly made declaration of trust is a binding legal document, and the courts will generally uphold it.
Can I get a declaration of trust after buying? Yes, if all owners agree. It is simpler and often cheaper to do it at the time of purchase.
Does a declaration of trust need to be registered? The document itself is not registered, but a restriction on the Land Registry title usually is. Keep the original safely and give a copy to everyone involved.
Can a declaration of trust be challenged? Only on limited grounds, such as fraud, mistake, undue pressure, or a later agreement to change it.
What is the difference between a declaration of trust and a deed of trust? In practice, the terms are used interchangeably for the same document.
We are joint tenants. Can we have unequal shares? You would first need to sever the tenancy and hold the property as tenants in common. We can deal with both steps together.
Will it affect my mortgage? It does not change your mortgage, and each borrower stays responsible for the whole loan. Some lenders want to be told or to give consent.
How much does a declaration of trust cost? Please contact our team for a quote.
Speak to Our Team
If you are buying with someone else, or already own a home together and want to protect your share, call +44 (0)20 3588 3500. We can prepare your declaration of trust alongside your purchase.
