Independent Legal Advice for Deeds of Trust & Postponement

What are deeds of trust and deeds of postponement?

A deed of trust (often called a declaration of trust) is a legal document that records who really owns a property and in what shares. It is commonly used when people contribute different amounts to a purchase — for example, friends buying together, an unmarried couple, or a parent putting money towards a child's deposit — so that everyone's share is written down clearly.

A deed of postponement works alongside a mortgage. If someone other than the borrower has an interest in the property — perhaps a parent who lent deposit money, or a family member with an existing charge — the mortgage lender will usually ask that person to sign a deed agreeing that the lender's mortgage ranks first. In plain terms, you are agreeing that if the property is ever sold or repossessed, the lender is paid before you are. A similar document, sometimes called a deed of consent or occupier's waiver, may be asked of adults living in the property.

Why does the lender require independent legal advice?

Signing one of these deeds usually means giving something up — priority over the lender, or rights you might otherwise have in the property. Because the person signing often is not the borrower and gains nothing directly from the mortgage, lenders and conveyancing solicitors want to be sure the document is signed freely, with a full understanding of what it means, and without pressure from family members or anyone else.

Independent legal advice (ILA) provides that assurance. An adviser with no connection to the transaction explains the deed to you privately, checks you understand it and are signing willingly, and then issues a certificate confirming the advice was given. Our certificates are prepared to satisfy standard lender requirements and are relied on by borrowers completing with major UK lenders. If your lender has its own certificate form, we will complete that instead — just email info@ilahub.com.

The main risks, explained simply

Nothing here should put you off signing — these deeds are routine and often the sensible way to complete a transaction. But you should understand the key implications before you do:

• A deed of postponement puts the lender first. If the property is sold or repossessed, the mortgage is repaid before your money. If the sale price does not cover everything, you could get back less than you put in, or nothing.
• A deed of trust fixes your share. The percentages you agree now normally decide what each person receives when the property is sold, even if circumstances change later.
• You may be waiving rights to stay in the property. An occupier's consent or waiver typically means you could not rely on your occupation to prevent the lender taking possession.
• These deeds are hard to undo. Once signed and relied upon by the lender, you generally cannot change your mind, so the time to ask questions is before you sign.

Who typically needs this?

The most common situations we see are parents (or other relatives) who have lent or gifted deposit money and are asked to postpone their interest behind the mortgage; adult occupiers — often grown-up children or partners — living in a property being mortgaged or remortgaged; and co-owners recording unequal contributions in a declaration of trust where a lender or solicitor has asked for independent advice. If you have been told you need an ILA certificate for any deed of trust, postponement, consent or waiver, we can help — and if you are not sure which document you have, our FAQs or a quick email to info@ilahub.com will point you in the right direction.

How ILA Hub's process works

Everything is done remotely, UK-wide, with nothing to print or post. You book online, verify your ID online beforehand, then meet your legal adviser by secure video call at a time that suits you, Monday to Friday, 9am to 7pm. The adviser goes through the deed with you in plain English, answers your questions, and — once the appointment is complete — emails your signed ILA certificate the same working day.