Dear Debbie

I would love to buy a flat but there is absolutely no way I'd be able to afford it on my own on my salary. An old friend of mine is in a similar position and we have been thinking that we might apply for one of those "friends" mortgages that some of the banks have been offering. The problem is that we have never lived together and I am nervous of entering into such a big commitment with someone I'm not married to! What do you think of these mortgages? Could it ruin our friendship?

Regards,
Rachel

Our Homes & Property Expert replies

Dear Rachel,

I do sympathise with you. The price of property has become so ludicrous now that it is really impossible to see how you could afford to get on the ladder without taking drastic steps. Robbing a bank is out of the question, so a mortgage share looks like the best option for many young people! I think it is a perfectly sensible solution to your problem, but you need to approach it in a very businesslike manner to avoid any problems that may arise down the line.

In many ways buying jointly with a friend is more straightforward than moving in with a lover because your thinking won't be muddled by sex hormones! Many people wander into cohabiting with a partner, refusing to look ahead to a time when love has gone out of the window and they are left without a home. If you are married, the law will protect you (for the most part) but if you are a cohabiting couple you may find that you are in a sticky position - particularly if one partner has contributed more to the home's running costs. In your case - where you are buying with a platonic friend, you need to establish all the things that could go wrong and work through them together.

Here's a quick check-list of issues you need to address:
· What would happen if one of you could not afford to keep up repayments.
· How stable are both your jobs?
· What are your long term aims - to buy together now, do up a property and move on in a couple of years to two separate properties? Or are you happy to stay together for a little longer than that?
· Does either of you have a partner that could cause problems for you - either by wanting to marry or move in with you?
· How will you organise sharing and paying for maintenance, repairs, bills?
· Do you share views on how the property should be done up?
· In the event that one or both of you want to move on, how will this be achieved amicably.

You also need to consider whether you will be joint tenants - where you each own an equal share of the property, or whether you will be tenants in common - where the proportion of what you own is based on how much you contribute In other words - he who pays the most, owns the largest slice (or loses most - if the value of the property goes down!)

I suggest that you contact a lawyer and have them draw up a legal document that addresses all these issues. Your lawyers should also advise you on what to do in the unlikely event that one of you dies. The deceased's share of the property does not automatically revert to the surviving mortgage partner - so make sure that your wills are up to date and cover this eventuality.

Once all the boring legal stuff is out of the way and you are clear how you will deal with death, loss of work, future marriage and all the other hurdles to happiness, I'm sure you will be able to get on with the business of finding a suitable home and enjoying your long climb up the property ladder!

Good luck,

Debbie