If, like me, you were optimistic starting 2021 believing a “normal” way of life was very near and then your reality was shattered by the third lockdown announcement on Monday night (4th January). This is a feeling felt by many and rest assured even we lawyers felt such anguish.
For many 2020 was a very difficult year and one we would most definitely like to forget. Whilst the year was drawing to an end, we all made resolutions, whether they were to find a new job, start a new business venture, concentrate on one’s mental health or move on from a relationship and/or home we were stuck in due to the pandemic.
Many individuals delayed ending relationships for fear of having nowhere to go/live. Over recent years we have seen a shift away from marriage and it is not at all uncommon for couples to live together and have children without being married. Additionally, it is not unusual for one person to solely own a property and for the other person to “move-in”; or for an informal agreement to be reached where one person purchases the house (maybe due to bad credit of the other) with the intention the other will equally contribute to all the associated costs such as the deposit and mortgage payments. Some individuals will formalise such agreements by creating a declaration of trust, however, others will not.
Sometimes these arrangements work well and when the relationship ends, the person with the legal interest does the noble thing and ensures that the other person receives their fair share. However, not all relationships will end amicably and not all legal owners will do the right thing.
Beneficial interest in a property
So what are your rights if this happens to you? Many individuals will be able to demonstrate that they have contributed to mortgage payments, renovations or other things that would allow them to acquire a beneficial interest in the property and by doing so a trust of land has been created. The Trusts of Land and Appointment of Trustees Act 1996 can assist with such cases and allows the courts to provide a remedy for the aggrieved party.
These cases all turn on their own facts and accordingly it is essential to seek expert advice on your specific circumstances so that you are fully aware of what your rights and obligations are.
How Nelsons can help
If you find yourself faced with problems such as the ones outlined above, feel free to contact a member of our dedicated team, who will be able to assist you and also discuss whether we can offer any alternative funding arrangements. The resolutions you have made can still become a reality.
For further information, please contact a member of our Dispute Resolution team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online form.