Ownership Information

A couple decide to buy a house or flat and cohabit, and probably the last thing on their mind is who owns what share in that property. However, relationships do break down and fatal accidents and bankruptcies do happen. For these and other reasons, it is essential when buying a property to discuss and record who is to own it. A failure to do so can lead to much heartbreak later, as well as to substantial legal costs.

Every couple has different circumstances. Accordingly, the law can be quite flexible. It will allow the couple to decide how the property in question is to be held, who will own it and what will happen to it if the relationship should end. Problems usually arise where the couple fail to make a decision or fail to record adequately what they have decided.

Record of Ownership

Most homes in England and Wales are registered. This means that details of the property and the person(s) holding it are recorded on the Land Register. This Register is open to the public. The person(s) holding the property may be (and usually will be) the true owner(s). However, they need not be. Sometimes people wish to conceal the identity of the true owner(s) of property and the law allows them to do so. It will be for the couple to decide who they want to hold the property and who will be the true owner(s).

Single or Joint

A property can be owned by up to a maximum of 4 people jointly.

Where two or more people own a property jointly, they may have equal shares or unequal shares in the property. It is important that there are documents recording the shares, particularly if they are unequal.

Survivorship

Where two or more people own a property jointly, they may agree that when one dies, the survivor or survivors should automatically become owner of that share. This is known as a right of survivorship (Joint Tenants) and it operates independently of any Will that the deceased person may have made. Alternatively, they may agree that when one dies, that share should be inherited by the persons he has named in his Will (Tenants in Common). In which case, it is essential that a Will is made as soon as the purchase of the property completes. It is for the joint owners to decide which of these alternatives they want.

If you wish to discuss any of the above matters with a qualified lawyer please do not hesitate to get in touch with any member of our team listed below.

Michael Blowers 01225 750011 michaelblowers@mogers.co.uk
Nicola Banks 01225 750019 nicolabanks@mogers.co.uk
Alison Treble 01225 750006 alisontreble@mogers.co.uk