Buying Property With A Friend Or Sibling? Key Questions And Legal Advice

Buying a property with a friend or sibling can be a practical way to get onto the property ladder, particularly at a time when affordability remains a challenge for many buyers.

Recent figures suggest around 236,000 households are jointly owned by people outside a romantic relationship, up around 9% since 2015–16, and nearly half of first-time buyers say they would now consider buying with a friend or sibling.

As a residential conveyancing solicitor, I often see how these arrangements can work well when everything is properly documented from the outset. However, problems can arise when expectations around ownership, contributions and future plans are not clearly agreed before completion.

Buying with a friend or sibling can work well, but it needs the same level of planning as any other major legal and financial commitment. Before making an offer, buyers should be clear on how the property will be owned, who is contributing what, how ongoing costs will be managed, and what should happen if circumstances change.

Common issues for friends or siblings buying a property include:

1. One friend wants out, the other doesn’t:
A few years later one person may want to move, get married, relocate for work, or cash in their share, while the other wants to keep the property.

2. Unequal financial contributions
One friend may pay a larger deposit, cover more mortgage payments, or fund improvements. Disputes often arise if ownership shares were never properly recorded.

3. Failure to document ownership shares
If there is no Declaration of Trust setting out who owns what percentage, arguments can occur when the property is sold. This is a common source of litigation. A Declaration of Trust is specifically designed to deal with unequal contributions.

4. Mortgage liability and credit risk
Most joint borrowers are jointly and severally liable. If one owner stops paying, the lender can pursue the other owner for the full mortgage debt, and missed payments may affect everyone’s credit profile.

5. Disagreements over expenses
Arguments can develop over repairs, insurance, service charges, renovations, and household bills.

6. Improvements versus maintenance
Routine repairs, essential maintenance, and value-adding improvements should be treated differently. If one person pays for a new kitchen, extension, or major refurbishment, the owners should agree whether that contribution changes their ownership share or is repaid when the property is sold.

7. One owner moving out or not living there
If one owner moves out, or the property is bought as an investment rather than a shared home, the owners should agree how mortgage payments, bills, rent, and occupation will be dealt with. They should also check whether the mortgage terms allow the property to be let or occupied in a different way.

8. Shared belongings and household purchases
Furniture, appliances, and other shared items can also become contentious. Keeping a simple record of who paid for larger items can help avoid disagreement if one owner moves out or the property is sold.

9. Changes in circumstances
Friends or siblings may later get married, have children, change jobs, relocate, experience financial difficulty, or want to buy with a partner. These are normal life events, but they can put pressure on a joint ownership arrangement if they have not been considered in advance.

10. No agreed exit plan
It is sensible to agree at the outset what happens if one owner wants to move out, sell, or buy the other out. This might include how the property will be valued, whether the remaining owner has first refusal, how long they have to raise funds, and what happens if agreement cannot be reached.

11. Relationship breakdowns (friendship rather than romance)
Even close friends can fall out when significant sums of money and long-term commitments are involved.

12. Death of a co-owner
The outcome depends on whether the property is owned as joint tenants or tenants in common. With joint tenants, a deceased owner’s share passes automatically to the surviving owner(s) which would be the friend who they bought the property with rather than their family. With tenants in common, their share passes under their Will or intestacy rules.

13. Disputes over a sale
If one owner refuses to sell, court proceedings may be required. Under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA), the court can determine ownership shares and order a sale.

While the conveyancing process deals with the legal transfer and ownership structure, buying with a friend or sibling can also raise wider personal and family considerations. That is why it is often useful to involve advice from other specialist teams, particularly around cohabitation arrangements and Wills.

Matt Taylor, Family lawyer:

“From a family law perspective, a cohabitation agreement can be particularly useful where friends or siblings are buying together. It can sit alongside the conveyancing documents by setting out practical arrangements such as who is responsible for particular costs, how day-to-day expenses will be managed, and what should happen if one person wants to leave. Having those conversations early can feel uncomfortable, but it often helps protect both the property and the relationship.”

Stephen Mackeller, Wills, Trusts and Probate lawyer:

“Property ownership and Wills should be considered together. When someone buys with a friend or sibling, the way the property is owned will affect what happens to their share if they die. Reviewing or making a Will at the same time can help ensure their wishes are clear, particularly where they would want their share to pass to family members rather than automatically to the other owner.”

Legal protections when buying property with a sibling or friend

From a residential conveyancing perspective, the main protections I would usually recommend considering are:

1. Holding as tenants in common.
2. Putting a Declaration of Trust in place.
3. Having a written agreement dealing with mortgage payments, bills, repairs, improvements, shared purchases, occupation arrangements, and what happens if someone wants to sell or move out.
4. Ensuring all owners have up-to-date Wills.
5. Being open about finances before applying for a mortgage, including income, existing commitments, credit history, and what would happen if one person could no longer contribute.

10 step checklist for buying a property with friends

1. Agree whether you will own the property as joint tenants or tenants in common.
2. Record unequal deposits, mortgage contributions or renovation costs in a Declaration of Trust.
3. Decide how mortgage payments, bills, repairs, insurance and service charges will be split.
4. Agree what happens if one person wants to sell, move out or buy the other out.
5. Check whether the mortgage allows the property to be let if one owner moves out.
6. Discuss your credit history, income, existing commitments and affordability openly before applying.
7. Keep a record of larger shared purchases such as furniture and appliances.
8. Consider a cohabitation agreement to cover practical living and financial arrangements.
9. Make or update your Will so your share of the property passes according to your wishes.
10. Take legal advice before completion so the ownership structure and supporting documents are clear from the start.

Buying together can be a practical route onto the property ladder, but it should be approached as a legal and financial partnership rather than simply a shared living arrangement. Clear written agreements are not about expecting things to go wrong; they are about protecting everyone involved and preserving the relationship if circumstances change.

In my experience, the biggest problems tend to arise around who owns what share and what happens when one party wants to leave the arrangement. Taking advice before completion can help make sure those points are clear from the start.

Thinking about buying with a friend or sibling?

Our Residential Conveyancing team can help you understand your options and put the right protections in place before you commit.