Tying the property knot

Buying a property with somebody else is seen by many as one of life’s significant milestones. However, as with any big financial commitment, time should be taken to weigh up the options and consider the implications of things not going quite as planned.

Here, Carole Fox, head of residential property at Nottingham law firm Rothera Dowson, offers her expert advice on some common concerns.

I currently own my own home, but my partner is moving in with me. What rights will they have?

Many people wrongly assume that it is the person that owns the property that has all of the rights. However, if you make the decision to cohabit, the person moving in could potentially be entitled to a share of the property, regardless of the fact that they are not actually the legal owner.

It is important to point out that there is no hard and fast rule as to what an individual is entitled to and each case can differ greatly depending on the circumstances. Generally, it is fair to say that the longer somebody lives with you and contributes to the household and living expenses, the more they could be entitled to should they ever move out.

My partner and I are buying a house together. Should we think about protecting our individual financial contributions?

In many circumstances, people will need to take on a mortgage when buying a house, and that will normally be in the names of all of the individuals involved in the purchase of the property. On this basis, if you are a couple, responsibility for that mortgage falls on both people jointly, meaning that both have to face the financial consequences if one party stops making payments.

It is quite common for one person to put more money into the property than the other. In these circumstances, we always advise people to protect their contribution by having it recorded in a separate document. Sadly, many individuals choose not to follow this advice, as they do not want to consider the fact that their relationship could one day break down. If this protection is not taken, and things do go wrong, then there is unfortunately nothing that can be done and the money will be lost as the deeds say that the property is split 50/50.

This advice is also applicable if a third party has helped out financially. Parents will often help first time buyers when it comes to purchasing a property and thought should be given to getting that investment back, should things turn sour. It is all very well handing over the money, but if the relationship does break down and there is no protection showing who paid what, then the partner who did not put the money in could well benefit financially if the house is sold.

Our relationship has broken down and we want to transfer the ownership of the house to just one of us. What should we do?

If you have a mortgage in place on the property, then the first thing to do is to contact the lending mortgage company. They will need to agree to the transfer and will usually check that the person that wants to remain in the house is able to make the payments on their own.

If the mortgage company is satisfied and they give their consent, then the transfer can go ahead. The terms of the transfer will have to be agreed in advance by both parties, so money may or may not change hands depending on the circumstances.

Of course, there may be some occasions where the lender does not grant consent for the transfer to take place. This is normally due to financial circumstances and, in the event of this happening, your partner and yourself will have to decide whether to sell the property or keep it in two names.

If there is no mortgage on the property, then provided an agreement can be reached as to what the position is on money, then the transfer can simply go ahead.

For more information on Rothera Dowson and the range of services the firm offers, visit: rotheradowson.co.uk