Savvy property owners who club together to buy a home are turning to no-nups to safeguard their investment.
Whether as a cohabiting couple, or two or more friends clubbing together, a cohabitation agreement, or “no-nup”, as they are now becoming known, can help to fix the outcome if things go wrong.
This is particularly important when those buying the property contribute unequal amounts. Nowadays, many young people are buying with the help of parents, and there is often a difference in the amount invested by each person, either at the time of purchase, or later in terms of bills, mortgage repayments, renovations etc. It is therefore very important to agree at the outset what share each owner has.
Many joint buyers who are not married or in a civil partnership do not realise they have little or no protection if things go wrong. It is important to be aware that joint buyers will not have the rights that would be given to a couple who divorce after a marriage or civil partnership.
Property can be held in specified shares, so that each gets back his/her relative contribution if there is a sale. This, however, does not protect the other financial contributions that may have been made: that is where the “no-nup”, or cohabitation agreement, comes in.
Read the full article here: Property buyers play it safe with no-nups