Holiday Property Sharing Agreements
Owning a holiday home jointly with friends or family members can be a cost-effective way of having a second home. If the property is only used by the owners, rather than by paying customers, the property should be easier to manage.
However, for the arrangement to work well, the co-owners need to agree at the outset how often they each can use the property and how the upkeep will be arranged and paid for. Having a detailed written agreement will make day to day management easier and will reduce the scope for disputes.
These Holiday Property Sharing Agreements can be used for houses and flats that are in shared ownership. The shared ownership may have arisen because the parties made a joint purchase of the property. Alternatively, the parties may have inherited the property, e.g. from a family member.
All of the agreements contain detailed provisions concerning the management and use of the property. The “declaration of trust” versions also confirm each owner’s percentage share in the property and set out a procedure to be followed when an owner wishes to sell their share. If a declaration of trust has already been made, e.g. when the property was purchased, a simple Sharing Agreement may be all that is required.
Holiday Property Sharing Agreements is part of Property. Just £38.50 + VAT provides unlimited downloads from Property for 1 year.
Frequently Asked Questions
My friends and I want to buy a holiday home together. What should we put in writing? +
A holiday property sharing agreement. It sets out how often each owner can use the property, how upkeep and costs are shared and how decisions are made, which prevents the disputes that sink informal arrangements. For co owners it is the day to day rulebook. The folder has sharing agreements for jointly owned houses and flats, whether bought together or inherited.
What is a declaration of trust and do we need one? +
A declaration of trust records each owner's share in the property and can set out what happens when someone wants to sell their share, which matters most where owners contribute unequally or are not married. The folder offers declaration of trust versions of the sharing agreement for that certainty, and a simpler sharing agreement where a declaration of trust already exists.
How do we handle one owner wanting to sell their share later? +
Agree the exit route up front. A well drafted sharing agreement or declaration of trust sets a procedure for a co owner who wants out, such as first offering the share to the others and how it is valued, so a sale does not force the property onto the open market or into dispute. The declaration of trust versions include this procedure.
Is a holiday sharing agreement different from letting the property to guests? +
Yes. A sharing agreement governs how the co owners themselves use and pay for the property, not letting to paying customers. If you also let it commercially to holidaymakers, you need separate holiday letting or booking documents and the related tax and safety duties apply. Keep the two arrangements in separate paperwork. The folder covers the owners' sharing side.
