With the current property market, parties are finding alternative ways to get on the property ladder if they cannot afford to purchase a property by themselves. This may involve purchasing a property with siblings, a group of friends, another couple, or purchasing a property early in a relationship with unequal contributions by the parties. Kiwibank are currently advertising a “Co-own” home loan as an alternative way to buy a home and obtain lending. We would suggest it is therefore an important time for purchasers to consider taking some legal advice in relation to the structure of the purchase and loan and look to obtain a property sharing agreement or a contracting out agreement to protect their interest or contribution towards the purchase of a property.

Obtaining proper legal advice is not limited to the purchase of a property or entering into a relationship, but will likely be necessary on the breakdown of a relationship or partnership. Following separation, if one party is looking to obtain further finance in their sole name a bank will generally require a properly executed separation agreement as a condition before approving further finance.