Co‑Buying Tips: How to Buy a Home With Friends or Family

Thinking about buying a house with a mate, your sibling, or a partner? It can be a great way to get onto the property ladder, but it also means you need a clear game plan. Below are the most useful steps to make co‑buying smooth, affordable, and conflict‑free.

Set Up the Money Basics First

Before you start looking at listings, each person should know how much they can actually afford. Pull together your credit scores, income statements, and any existing debts. Use an online mortgage calculator to see the combined borrowing power and the monthly payment you’ll each owe.

Most lenders will want to see a joint application, so be ready to share documents. If one partner has a better credit rating, consider using that person as the primary borrower to snag a lower interest rate. Remember to factor in extra costs like stamp duty, solicitor fees, and moving expenses – these can add up fast.

Write Down Who Does What

A written agreement is a must, even if you trust each other. Outline each person’s share of the property (50/50, 60/40, etc.), who pays what portion of the mortgage, and how you’ll handle utilities, council tax, and repairs.

Include a plan for what happens if someone wants out later. Will you sell the whole house, or let the other person buy the share? Setting these rules now saves a lot of heartache down the line. You can use a solicitor‑drafted co‑ownership agreement or a simple contract that both parties sign.

Don’t forget to decide on decision‑making. Big choices like renovating or refinancing should require consent from all owners. Some people set up a joint bank account for shared expenses – that makes tracking easier and shows lenders you’re serious.

When you finally find a property, involve a solicitor who knows about shared ownership. They’ll check the title, ensure the mortgage can be split correctly, and register each owner’s share with the Land Registry. This protects everyone’s legal rights.

Lastly, keep communication open. Regularly review the mortgage statement, discuss any changes in income, and update the agreement if life throws a curveball. A quick chat every few months can keep the partnership healthy and the home affordable for everyone.

Co‑buying isn’t just about splitting a price tag – it’s about building a partnership that works for the long term. Follow these tips, stay organized, and you’ll be on your way to a home you all love without the usual stress.