Buying a property in joint names

As a family lawyer, I always urge others to consider carefully how they wish to own their property, and to consider the long term. What do you want to happen to the property in the event your relationship breaks down or in the event that one of you dies?

I have recently dealt with three cases where parties have purchased properties in joint names. The first case was a young couple. The young man had been saving for a deposit since he started earning and he had saved £15,000. He was engaged, and his girlfriend had saved £5,000. They purchased their first home together in joint names but unfortunately as soon as they purchased the property the relationship ended.

As the property was purchased in joint names the young woman is now seeking a sale of the property and 50% of the net proceeds.

If the young man had to considered what would happen in the event that the relationship ended he could have protected his interest. The property could have been held in unequal shares; or he could have received a greater share of the proceeds in view of their contributions.

In a similar case the parties purchased a property in unequal shares, however, there was no Trust Deed. The shares were recorded but it was disputed as to how they should be calculated resulting in the matter being resolved at Court.

In a third case, the parties purchased the property in joint names with unequal contributions with only one party contributing to the deposit. The relationship ended after purchase, however, fortunately in this case the other party recognised that she had made no contribution and made no claim against the property.

These examples reflect how important it is to consider how you wish to hold your property at the time of purchase and what will happen to the property in the event that your relationship ends or one of you dies.

Ways your solicitor can assist:

• Your solicitor can draft a legal document known as a “Trust Deed” or “Declaration of Trust” which can confirm both parties’ intentions in respect of the property.
• Cohabitation Agreement. Your solicitor can assist you in drawing up a contract detailing the terms upon which you and your partner will live in the property.

Your solicitor can advise how you should hold the property in the event one of you dies as your shares will be managed differently if you are joint tenants vs. tenants in common.

With this advice in mind, give some thought to what you wish to happen to your property in the long term and discuss this with your solicitor.