How to split ownership fairly when deposits aren't equal

When two or more people buy a home in England and Wales, there are only two ways to own it. You pick one on the paperwork, and most co-buyers want the second one.

Joint tenants means you all own the whole thing together, in equal parts. If one of you dies, their part automatically goes to the others. That suits married couples. It rarely suits friends or siblings.

Tenants in common means each of you owns a set percentage — and those percentages can be different. You can also leave your slice to whoever you want in your will. This is the option most co-buyers choose.

Your solicitor ticks this box when you buy. It's much easier to get right on day one than to change later.

There's no single 'correct' answer. There are three approaches that come up again and again, and one of them will probably feel right to your group.

Split by deposit. Your share matches what you put in. Put in £40,000 next to someone else's £12,000 and you own roughly 77% of the deposit pot to their 23%. The mortgage part is usually split by whoever pays it.

50/50 with an IOU. You both own half, but the extra money one person put in is written down as a loan that gets paid back first when you sell. Day-to-day life stays simple, and nobody loses out.

The running total. Your share grows with the deposit you paid plus the chunk of the mortgage you've paid off over time. It's the fairest maths and the most admin — you'll need a spreadsheet and a yearly check-in.

Who owns what and who pays what each month are two different questions. Someone who owns 25% might still pay half the electricity, because they use half the electricity.

The easy way to think about it: costs tied to the property get split by ownership share. Costs tied to living there get split by use.

Home improvements need a rule too. If one person pays for a new kitchen, decide up front whether they get that money back when you sell, or whether their share goes up. Don't let it quietly disappear.

Whatever you agree is only worth something if it's written into a Deed of Trust — sometimes called a Declaration of Trust. It's a document your solicitor prepares alongside the purchase, and everyone signs it.

It should say each person's percentage, the exact deposit figures behind those percentages, how any IOU between you gets repaid, and what happens if someone starts paying more or less.

It usually costs a few hundred pounds. Against a home worth hundreds of thousands, it's the cheapest bit of protection in the whole deal.