Property Buying Guide
Finding someone to co-invest with and tips for using property co-buying introduction agencies
This is a novel concept in house buying and as such, takes a certain approach to be successful.
The process of contacting, shortlisting and choosing your property partner or partners will require patience, openness, persistence and maybe the ability to revisit possibilities and give second chances. Remember, this isn't a dating agency; this is more of a business proposition.
If you are interested in starting a dialogue with other like-minded individuals and investors with a view to co-buying to buy a first home, register with a joint ownership introduction service . If you are already a pair of friends buying together you can extend your group size through them.
Property Joint Ownership Introduction Services:
www.gohalves.co.uk
www.co-buyaproperty.com
Others: youtoshare.co.uk, sharedspaces.co.uk, jointequity.co.uk, sharingaproperty.co.uk, co-buyers.net, propertyfriends.co.uk SmartSharedHomes.com,
Through the process of contacting, interviewing and assessing them, you will establish whether you feel you could live with each other.
Contacting your prospective joint buyer/s
Contact one or more of the people on the list by email. Get to know each other a little.
Speak on the phone if you wish.
Arrange to meet with one or more of the prospective buyers, perhaps all together at a public place. Go through a process of elimination based on what each of you are looking for and find out whether you feel you could share a home with them. Well-publicised codes of personal safety should be observed when meeting up with people you have met through the Internet.
Get to know them better by talking about your backgrounds, jobs, interests, houses, television, music, books, where you're from, holidays etc.
Discuss the elements of the trust deed or declaration of trust and co-habitation agreement and find out what your views are on various aspects of it. Look for any areas of compromise.
Ask for character references. If you are apprehensive about proceeding without knowing more about your potential joint owners you may ask for proof that they have no criminal record or financial debts. Under the Data Protection Act, you are not able to have checks carried out on other people. It is up to the individual to gain proof that checks have been undertaken and to show you the original documents (not photocopies) confirming their records.
For documentation proving that you do not have a criminal record you will need to complete a Subject Access Form which is available from your local police station. This check will cost you around £10. It is not as extensive as those undertaken by The Criminal Records Bureau. It is not possible for an individual to ask for a search by the CRB.
To get a record of your credit rating, you can visit www.myequifax.co.uk
When you get to know each other better, see if your mortgages and deposits can get you the sort of property you want, or whether you need another partner to join you.
If none of the original selection appeals – and someone might, a second time around – go back or visit all the other introduction websites listed above.
You will probably have a joint mortgage and a joint account. You can pay different deposits and different amounts of the mortgage, and you might decide this gives you rights to varying proportions of the equity when you come to sell. This will all need to be detailed in the trust deed, declaration of trust or co-habitation agreement. Records will have to be kept to determine who has paid what towards the property.
When you get to know each other well enough, perhaps you will want to see where you each live, to each gauge the other's lifestyle!
When you have agreed on where you want to live, your budget and preferred property type, then it's time to contact some estate agents!
When viewing houses, think about whether you might want two living rooms, or two bathrooms, or to rent out a reception room as a bedroom.
You should be very clear from the outset about what you expect from the property and how you see the space being used.
The way you manage your relationship will be very important – key words are resolution not litigation!
Find out more about Joint Ownership, Joint Equity and Co-Buying a property in our Guide:
What's good about joint ownership? What are the downsides of joint ownership? l How much can we borrow for a joint ownership mortgage? l The two types of joint ownership, joint tenancy and tenants in common l Drawing up a trust deed, or declaration of trust and joint ownership agreement l Example of a declaration of trust l Example of a joint ownership agreement l Joint mortgages and how the finances could work when you buy with others l Frequently asked questions about joint ownership
Most useful and most popular pages on this site:
Look for your First Property l Seek First Time Buyer Mortgage Advice l See our Best First Mortgages Comparison Table l Find out about First Time Buyer Mortgages l Find out How to Buy a House l Learn all about The First Time Buyer Mortgage l Shared Ownership