Joint Property Ownership Disputes
Am I entitled to a share of the house?
For many people, the dream of home ownership remains just that – a dream. And this issue with property is a problem that does not just affect Millennials. Generation Rent includes people from all age ranges, including over-60s, thanks to the rise in Silver Splitters (those getting divorced after 60). And joint property ownership can often be a solution.
To achieve their goal of owning their own home, many people are now clubbing together with unmarried partners, friends, relatives, business partners or even strangers to get a foot on the property ladder.
Now, on the face of it, the legal owner is the person (or persons) whose name is recorded at the Land Registry as the owner, or in the case of unregistered land, whose name is on the title deeds. However that doesn’t necessarily mean that as someone who is not the “legal” owner of the property, you aren’t necessarily without a share in the property.
In particular, the law in England and Wales dictates that that even in cases where there is no clear outright clear ownership, the person without “legal ownership” could be found to be entitled to an “equitable” share in the property if they have made contributions towards its purchase or upkeep.
NB This page is all about disputes between a couple or others with shared ownership of a single house or flat. It doesn’t cover the case where 2 or more leaseholders share the ownership of their block.
Click here to read all about shared freehold disputes
Handling joint ownership disputes
But joint home ownership can lead to disputes. Our dispute resolution and family law teams understand how bitter and expensive such disputes can become. Therefore, we offer swift, practical advice, working with you to resolve the disagreement without having to make a Court application if possible.
However if going to court becomes inevitable, you can be confident that by instructing us, you have a law firm on your side that knows the law and understands the tactics needed to secure a win.
Here at Bonallack and Bishop, we provide property dispute advice to clients locally across Wiltshire, Hampshire, and Dorset and throughout England and Wales – from our offices in Salisbury, Fordingbridge, Andover and Amesbury.
To speak to one of our Joint Property Ownership Dispute specialists, just call FREEPHONE 0800 1404544 or one of our local office numbers [see below] for free initial phone advice.
What are the different types of joint property ownership?
Property can be owned jointly in two ways:
a) Joint tenants
b) Tenants in common
Joint tenants have equal rights to the entire property. In addition, joint tenants have a ‘right of survivorship, which means that if one joint tenant dies, the property automatically transfers to the other – the surviving owner. This type of property shared ownership is often chosen by married couples or civil partners.
Tenants in common are quite different. They own separate shares in a property and these shares may not be equal. For example, if you are buying a property with a friend and you put down 60% of the deposit, you may choose to own the property as tenants in common with you having a 60% share and your friend owning 40%.
Owning a property as tenants in common also allows for each owner to pass on their share of the property to whomever they wish via their Will.
You can switch from joint tenants to tenants in common and vice versa at any time.
Why do joint property co-ownership disputes occur?
These kind of disputes can occur for many reasons, including:
· One owner wants to sell their share of the property and the other does not
· The relationship between the joint owners falls apart – particularly common for couples living together without being married or in a civil partnership. they may, for example be in dispute about the share of the property owned by each of them or arguing about their rights to occupy the property
· Co-habitee disputes – for example where the non-owner made significant contribution to the property and may therefore have a claim for part of the equity
· The owners disagree about the size of their share in the property –
· The property is inherited under a Will or through intestacy when one new joint owner wants to sell and the other doesn’t
· Disagreements over outgoing and repairs
· Investment property – where property is owned jointly, and there is a disagreement between the investors
Can’t agree? Don’t delay – get early legal advice
If a shared ownership dispute between you and the other joint owner/s of your property occurs, it is important to try and resolve the situation between yourselves in the first instance.
If this proves impossible, you’re going to need good specialist legal advice.
Our disputes team is committed to helping preserve personal relationships; therefore, we will support and encourage you to come to an agreement without going to court – using methods such as negotiation or mediation.
However, if going to Court proves inevitable, we will fight your corner to get you the right result.
How do I avoid Joint Property Ownership Disputes?
When it comes to preventing disputes between joint property owners, the old saying, “an ounce of prevention is worth a pound of cure”, applies.
Before buying a property with someone else, make sure you get legal advice as to which form of shared ownership is right for your circumstances, i.e. joint tenants or tenants in common.
Furthermore, the financial contributions made towards the initial purchase should be recorded and if one of you has put in more, draw up an agreement to ensure this is recognised on any future sale.
In cases where you and the other owners buy the property as tenants in common, it pays to put in place a trust deed which sets out the rights, shares, and entitlements each owner has regarding the property – plus details of how any dispute relating to the sale of the property should be resolved.
Our conveyancing lawyers will take the time to discuss your situation and provide expert advice regarding the best structure for your shared property purchase.
Can I sell a jointly owned property?
If all the owners of a property wish to sell, there is no problem. However disputes arise when one party wishes to put the property on the market and the other/s do not.
One way to resolve the dispute is for the party resisting the sale to buy-out the other. However, sometimes this simply won’t be possible – for example, where the co-owner wishing to sell has inherited a share of the property under a Will.
In these circumstances it may be possible to apply to the Court for an Order for Sale.
Forcing a sale of a jointly owned property
When the joint owners of a property have reached a stalemate whereby one is determined to sell but the other refuses, the co-owner wishing to sell can apply to the Court for an Order for Sale.
This type of claim is brought under the Trusts of Land and Appointment of Trustees Act, commonly known as ‘TOLATA’ (see below). The Court has a fairly wide discretion when deciding whether to make an Order for Sale but must consider the various factors set out in section 15 of TOLATA. As a very general rule, if one co-owner wants to sell the property, the Court will likely grant an Order for Sale unless the circumstances of the case dictate otherwise. For example, if children live in the property, the Court might consider that selling it would cause them unwarranted upheaval and refuse a sale.
Ultimately, the likely outcome of a TOLATA claim depends entirely on the circumstances of the case. So, before embarking on this course of action it is crucial to take advice from solicitors like us, who have vast experience in such claims. We will consider the merits of your position and advise on the best course of action in your circumstances.
Can a person move into my jointly owned home without my permission?
A co-owner who wants their partner to move in, or an ex-spouse still living in the jointly owned family home who wishes to start cohabitating with a new partner can cause deep distress to other owners. And that can quickly turn into a genuine dispute.
Every owner has a right to have guests in their home. However, if the circumstances are to be permanent or at least semi-permanent, it can lead to what is known legally as “an implied licence to occupy” being granted to the third-party. If you want a quick path to an expensive and stressful situation, here is a perfect example.
Don’t let the situation fester. That can risk an “implied licence” and the potential difficulty of removing the person from your home. Instead take prompt legal advice. Talk to us about how you can remedy the situation. Our Solicitors will take the worry off your shoulders and provide clear, practical advice.
Can I evict my partner from the home?
If you are a joint owner of the property your partner cannot simply evict you. However, they can apply to the Court for what is known as an Occupation Order. This type of order sets out who can live in the family home, who can return and who should be kept out.
Occupation Orders can even set out a part of the house each owner can live in. They can also set out who must pay certain bills and outgoings in relation to the property. However, Occupation Orders can only be temporary. They do not affect the ownership of the property.
Our team can assist you in applying for or defending an application for an Occupation Order. We have an extensive family law team who will work with our disputes team to ensure you receive all the advice and representation you need to protect your interests.
Joint Property Ownership Disputes – What is a TOLATA Claim?
The Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) provides jurisdiction to the Courts to make certain decisions about the ownership of land. The main types of TOLATA applications relate to:
a) Who has the right to occupy a property?
b) How is the property owned?
Courts can only make a declaration of ownership under TOLATA. They cannot vary who owns what proportion of a property subject to dispute. However, the Court does have the jurisdiction to order the sale of a property subject to a TOLATA claim – and these kind of orders are becoming increasingly common, as the number of people living together and owning property together increases.
TOLATA claims often arise in cases of separating cohabitees, who, contrary to popular belief, do not have the same rights as divorcing couples when it comes to the sharing of property and assets.
These types of property disputes can be very complex. However our team have the necessary practical experience to win these kind of claims.
Are TOLATA claims heard in private?
TOLATA claims are normally heard in an open Court. However, in a dispute between cohabitees which involves children, an application can be made under Schedule 1 of the Children Act 1989 so that any court proceedings will be heard in private.
Our Solicitors will advise you on the best option.
Forcing a sale of a jointly owned property
When the joint owners of a property have reached a stalemate whereby one is determined to sell but the other refuses, the co-owner wishing to sell can apply to the Court for an Order for Sale.
This type of claim is brought under the Trusts of Land and Appointment of Trustees Act as described above’. The Court has a fairly wide discretion when deciding whether to make an Order for Sale but must consider the various factors set out in section 15 of TOLATA. As a very general rule, if one co-owner wants to sell the property, the Court will likely grant an Order for Sale unless the circumstances of the case dictate otherwise. For example, if children live in the property, the Court might consider that selling it would cause them unwarranted upheaval and refuse a sale.
Ultimately, the likely outcome of a TOLATA claim depends entirely on the circumstances of the case. So, before embarking on this course of action it is crucial to take advice from solicitors like us, who have vast experience in such claims. We will consider the merits of your position and advise on the best course of action in your circumstances
Legal and beneficial interests – is there a difference and why does it matter?
Yes, there is certainly a major difference between holding a legal or beneficial interest in a property. In short, the person who owns the legal interest in any property is the one who owns the legal title of the land. Their name, for example, would be listed at the Land Registry as the legal owner.
But a beneficial interest is different. A beneficial owner has been described as someone entitled to the benefits of the property. In reality, for example, that could mean that they have the right to occupy the home, or the right to share in the income or sale proceeds from a property.
Why does it matter? Without either a legal or beneficial interest, you may not be entitled to live in a property – or receive any of the proceeds, of sale for example.
This is not normally so much of an issue with divorce – unless the marriage has been extremely short. That’s because all assets, whether legal or beneficial, are considered as family assets and available for distribution between the parties by agreement, or if necessary, by the court.
But when it comes to cohabitees, business partners or just friends owning a property, in the absence of a legal interest, establishing a beneficial interest is essential.
How is a beneficial interest in a property established?
In order to substantiate a claim to beneficial interest in a property, the claimant will need to prove that they have made one or more of the following types of contribution:
• the costs of purchase (financial)
• the mortgage, rates, etc. (financial)
• working to renovate, improve or maintain the property (which can be non-financial)
• paying other household bills so that their ex-partner can pay the mortgage, etc. (indirect financial input)
These sort of claims can prove really tricky – our experienced family law solicitors plenty of experience of this area of law and can provide the the legal advice and representation you need.
Joint ownership – problems with mortgage default and repossession
One problem with shared ownership of property with friends or a new partner is they may not as careful as you are about paying their share of the bills. Or they may have defaulted on payments in the past. In these kind of situations, you could find your home at risk, as the creditor (normally a bank) looks to enforce a sale of the property you own together to liquidate the capital needed to pay the debt. In other words, if you own the property jointly, those creditors can try to recover that money from you too.
If a Charging Order over the property is granted to the creditor, it can apply for an order for sale under section 14 of TOLATA. In deciding whether to order a sale, the Court must consider the factors under section 15 of TOLATA, namely:
· the intentions of the person or persons (if any) who created the trust,
· the purposes for which the property subject to the trust is held,
· the welfare of any minor who occupies or might reasonably be expected to occupy any land subject to the trust as his home, and
· the interests of any secured creditor of any beneficiary.
If all the co-owners owe the debt, then it is likely an order for sale will be made.
However, the good news is that if only one co-owner’s share is subject to the Charging Order, an argument can be made to prevent the sale. It is important to note the list above under section 15 is not exhaustive.
What happens if my co-owner has lost mental capacity?
When a person owns property with another person and loses the mental capacity to make decisions regarding that property, then they simply won’t be able to legally make a decision regarding the sale of the property themselves. Instead you will need to apply to the Court of Protection if there is no applicable Lasting Power of Attorney. The Court of Protection can appoint a Deputy to manage the financial and property affairs of the person who has lost mental capacity. This will allow someone else, usually the other joint owner, to make decisions on behalf of the person who has lost their mental capacity. The Court can also make orders for the sale of the property.
Click here read more about the Court of Protection and how our experienced team can help you
If you find yourself in a joint property ownership dispute, please contact us immediately for no strings attached free initial phone advice. That simple phone call could put your mind at rest.
FAQs
What legal rights do I have jointly owned property?
When you jointly own a property with someone else, you will both have ownership rights, such as the right to live in the property and the right to mortgage, sell or transfer your share. In reality, you will both need to agree to the transaction. For example, if your co-owner does not want to sell, you might have to take legal action to force a sale.
If you own your property as a tenant in common, you have the right to leave it to your choice of beneficiary in your Will. If you own property as a joint tenant, then you have the right to all of the property, should the co-owner die.
What happens to a jointly owned house when someone dies in the UK?
If you owned the property as joint tenants, the survivor automatically becomes the owner of the entire property. If you owned the property as tenants in common, then the deceased’s share will pass in accordance with their Will.
If a joint owner did not leave a valid Will, their share will pass under the Rules of Intestacy to close family members, such as a spouse and children. This can make the situation difficult for the remaining owner, who may have to leave the property if family members want to sell.”
Do you need probate if a house is jointly owned?
If a property was owned as joint tenants, a Grant of Probate is not needed in respect of the property as it will automatically belong to the survivor. If you want to notify the Land Registry of the death, you can send them a copy of the death certificate and apply to have the Land Register changed to note your sole ownership.
A Grant of Probate might still be necessary for the deceased’s estate, depending on its size. Small estates do not always need a grant. If a property was owned as tenants in common, a Grant of Probate is needed or, if there is no Will, a Grant of Letters of Administration. This will authorise the deceased’s executors or administrators to sell or transfer their share of the property.
What happens if my husband dies and house is only in his name?
The property will pass in accordance with the terms of your husband’s Will, if he made one.
If he did not, his estate will be dealt with under the Rules of Intestacy. The Rules provide that if someone leaves a spouse or civil partner and children, the spouse or civil partner will inherit the first £322,000 of the net estate plus half of the remainder. The children will share the other half equally.
If your husband had no children, you would inherit the entire estate if he did not leave a Will.
If you are not adequately provided for, you can consider making a claim against the estate under the Inheritance (Provision for Family and Dependants) Act 1975, known as an Inheritance Act claim.
As a spouse, if your claim is successful, you could be awarded a sum similar to what you might have received in a divorce.
