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Buying a house with a friend: what to agree first

Short answer: Buying with a friend is a good way onto the ladder, and it works best when the hard questions are settled before you move in. Who owns what, who pays what, and what happens when one of you wants to move on. A declaration of trust puts the answers in writing.

Updated 24 October 2026

Own as tenants in common

Friends almost always want to be tenants in common rather than joint tenants. As joint tenants, if one of you dies the other automatically gets the whole home, and your family gets nothing. As tenants in common, your share passes under your will. Our guide to joint tenants and tenants in common explains the difference.

The mortgage is joint, whatever your shares

Your lender will treat you as jointly responsible for the whole loan. If your friend stops paying, the lender can ask you for all of it. A declaration of trust can say that the friend who didn't pay owes you back, but it can't change what the lender is owed. Be sure you trust each other's finances before you sign the mortgage.

What to agree

  • how much each of you is putting in, and whether that comes back first when you sell
  • who pays what share of the mortgage, bills and repairs
  • what happens if one of you wants to sell, and how much notice you give
  • whether the one staying can buy the other out, and how the price is set
  • whether either of you can rent out a room or move a partner in
  • what happens if one of you moves out but the home isn't sold

Partners moving in is the one friends most often forget. Agree it now, while it's hypothetical.

Plan the exit from day one

Most friend purchases end with one buying the other out or both selling, usually because of a new relationship or a job. It isn't a failure, it's what happens. A notice period and a buyout clause at market value, set by an independent valuer if you can't agree, turn a difficult conversation into a process.

Stamp Duty

First-time buyer relief only applies if every buyer is a first-time buyer. If either of you has owned a home before, you both lose it. If either of you will still own another home after completion, the whole purchase usually pays the 5% higher rates.

Make wills

Your friend inherits nothing from you unless your will says so. Decide whether you'd want them to be able to stay in the home if you died, and write it down.

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