By Becky Fowler, Legal Executive
In today’s modern society more and more couples (straight and gay) are choosing to live together.
If a property is in the sole name of one party then basically it remains that person’s property unless the other party can establish that there was a common intention that they would be entitled to a share (possible examples contributing to the mortgage repayments or paying household bills). Parties can come to an agreement in this situation but disputes do arise and are often unpleasant and expensive.
If you own property jointly it is important to decide whether you will own the property as joint tenants or tenants in common.
As joint tenants you each own the entire property and in the event of one of you dying their interest in the property will pass automatically to the survivor. It is usual for married couples to buy a property as joint tenants.
The alternative is to purchase a property as tenants in common – each owner has a distinct share in the property. In this situation each party will automatically own half the property. However, you can decide between yourselves what share belongs to each of you; for example, one party contributed more to the purchase price than the other and this could be reflected in the respective shares of say 75% and 25%. The important point here is that each party owns their share and are only entitled to that percentage of the sale proceeds if sold during their lifetime. If they die then their share of the property forms part of their estate. It does not pass automatically to the other party.
3 things for you to consider when purchasing property together:
- Make sure the house is in joint names, in appropriate shares
- Set up a simple cohabitation agreement
- Make Wills
Many couples believe they will qualify for some protection under the law if their relationship breaks down. However, this is not the case and no matter how long the couple have lived together the law effectively treats them as separate individuals with no rights or liabilities to each other should the relationship end. The exception to this is same sex couples who have entered into a formal civil partnership.
The absence of any liability between the individuals has some far reaching consequences and in particular in relation to the home they may own jointly.
Becky can be contacted for further advice on 01603 693578 or email rf@clapham-collinge.co.uk |