In this article
But, as with anything, it’s a good idea to weigh up your pros and cons.
With property, there can be some unexpected and complex laws involved. It’s important to be fully informed when making decisions about sharing a property with your partner, whether you’re looking to rent or buy.
In this blog, we cover different living arrangements and unmarried couple’s property rights.
Looking to cut to the chase? If you’re looking for a solicitor to help answer questions about your property rights, just call us on 020 3007 5500, or submit a contact form.
Cohabiting arrangements
There are lots of different living combinations that can happen between an unmarried couple. This includes:
- Renting a property together
- One person already rents and the other moves in
- Buying a property together
- One person already owns a property and the other moves in
- Both people own separate houses but have moved into one house
- Moving in with one partner’s parents
Living arrangements haven’t always been so flexible, these days you can choose a living arrangement that works for you. You’ll likely experience many different living arrangements throughout your life.
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A brief history of home ownership
Historically, homeowners would be the male in a relationship and the female would move in following marriage. Women would have to give all rights over their property to their husbands. During the early 1800s, it was typical for married couples to stay together, and divorce was relatively rare.
1882 saw the introduction of the Married Woman’s Property Rights Act in England and Wales giving women the right to own, sell and buy property. This caused an influx of divorce due to women gaining newfound security.
Cohabitation didn’t become widespread until the 1970s, but even then, society still frowned upon it for women.
This leads us to today. Marriage isn’t a necessity for moving in together, and each party can own individual shares in the property.
Although we’ve come a long way, the law surrounding property is still very complex and can be dependent on many different elements. This is why it’s always best to speak to a solicitor about your case.
Buying a property together as an unmarried couple
Homeownership is open to all kinds of relationships regardless of marital status. This includes friends, family, cohabitants, married couples, single people and more. If you’ve got the means for it and can meet certain criteria, you can own a property.
The process of buying a house is largely the same as an unmarried or married couple. But your rights over the house will vary depending on which type of tenancy you choose.
For older couples, it’s also important to consider who the property goes to if one of you were to pass away unexpectedly.
Set the record straight
Your cohabitation agreement can include all aspects of your joint assets such as furniture, cars, and pets, and sets out what happens if you were to split up.
They are similar to a prenup and can be drawn up at any point in your cohabitation.
What if you contributed unequal amounts to the house?
You might find that when it comes to buying a property, you and your partner don’t have equal means. For example, one person might be able to contribute £10,000 towards a deposit, and the other £5,000.
You’ll need to have an open conversation about how you’d both like to own the house. Keep in mind that this also influences the division of your home if you break up. There are a few ways that owners can split home ownership.
Joint tenants vs tenants in common
Joint tenants – This is the most common option for homeowners. It means that regardless of each person’s contributions, you both own half of the property.
You must also make joint decisions about the property which may be difficult if things become strained!
Tenants in common – This is a good option for couples contributing different amounts towards the house and who wish for this to be reflected in their share of the property. However, it is commonly still 50/50.
A Declaration of Trust goes hand in hand with being tenants in common. Your solicitor will draft your Declaration of Trust to set out who receives what share of the property.
Being tenants in common gives each owner more control over what happens to their share of the house.
- Each owner can choose what happens to their share of the house when they pass away. This is opposite to being joint tenants, where the house automatically goes to the other owner.
- You can request to have separate mortgages altogether, although this isn’t a common setup.
- You can remortgage and take out loans on your share of the house without consulting with the other owner.
You can change your ownership type if needed. For example, if you’re joint tenants but then split up and have children with other people, you can change to tenants in common to ensure your shares of the house are split fairly between all the children.
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My parents want to help pay for the house, what does this mean for them?
A Declaration of Trust is a handy option if you are a first-time buyer and the Bank of Mum and Dad (BOMAD) is stepping in for your deposit.
You can specify in your Declaration of Trust that you will return your parents’ deposit once you sell. Setting this up could make your parents more inclined to help you out – especially if they are concerned about how long your relationship might last.
If one of us passes away, what happens to our house?
When one person in the couple passes away, the other named joint tenant becomes the sole owner of the house.
If you decide to move into your partner’s jointly owned home and your partner passes away, the other named owner will then be entitled to do what they please with the house e.g. move in themselves or sell it.
As you wouldn’t have a share in the ownership of the house, it could mean that you need to find somewhere else to live and won’t receive anything from the sale, unless you can prove beneficial interest in court.
For tenants in common, the person stated in their will receives the share of the house. They won’t be able to sell until all owners agree to it.
What happens to our property if we split up?
It’s up to you what you decide to do with the property if you split up. Some of the options include:
- Selling the house and splitting the cost accordingly
- One person buys the other person out
- Both people pay the mortgage, but one person stays in the house and covers bills and maintenance
- Keep the house but rent it out
- Transfer the house into one sole name
- One person stays in the house with any children until they grow up
There are many more ways people can deal with jointly owned property. Of course, things can become much trickier if you’re on bad terms or disagree about what to do going forward.
Getting married after buying a house
If you get married after buying a house, your house becomes a matrimonial asset shared between you, regardless of a Declaration of Trust.
To set out specific ownership of your house, you will need to get a pre-nuptial or post-nuptial agreement.
What if we split up and disagree about the property?
It’s not uncommon for there to be property disputes when a relationship breaks down. It can be extremely hard for people to let go of their homes, which can conjure up a lot of emotions and distress.
These kinds of disagreements could be about who can stay in the house, the selling of the house or the ‘fair’ share of the house once it’s sold.
Any initial agreements made upon the purchase of the house don’t necessarily remain valid.
The court considers many factors when making decisions about the property. Things can become especially difficult with the involvement of children. The court will always make decisions based on the welfare of the child.
Dealing with property disputes using TOLATA
The Trusts of Land and Appointment of Trustees Act (TOLATA) allows courts to deal with disputes relating to property ownership.
TOLATA is mostly used for joint tenants who disagree on their property shares. Because tenants in common set this out in the Declaration of Trust, it’s not usually necessary for them to use TOLATA.
You can use TOLATA to resolve issues relating to:
- The sale of the property
- Who’s entitled to occupy the property
- Establishing people’s shares in the property
Solving matters over mediation is usually much better for all people involved as it can reduce stress, time and costs.
What if one person owns a house and the partner moves in?
If one person in the couple already owns a house and the other moves in, the owner will have the rights over the house unless stated otherwise through a cohabitation agreement or through the formation of a beneficial interest.
A beneficial interest entitles someone to some of the money from the sale of the house or the right to occupy the house. There are a few scenarios that may result in someone gaining a beneficial interest, which can include:
- Contributing towards the mortgage and bills
- Paying for work or renovations
- The owner of the house has given the other person false hope of ownership
As a homeowner, it’s important to understand the legal implications of inviting your partner to cohabitate in your house. If you were to split up, they may be entitled to some of the money from the house sale. In circumstances that involve children, they may be entitled to stay in the house.
Unmarried couple’s property rights when renting
When you’re renting there’s a lot less complication for unmarried couples. There’s more of an emphasis on the practicalities of renting rather than the legalities.
For example, if you rent a place together, you’ll buy all your furniture, share the bills, and maybe have a pet. Hopefully, you would be able to sort these things out between you if you were to split up.
The person named on the tenancy agreement can stay in the property. The other person will need to look for somewhere else to live.
If both names are on the tenancy agreement, you can speak to your estate agent about ending the tenancy or changing the tenant name.
When it comes to living with your partner, there’s a lot to consider, whether you’re buying or renting. It can feel overwhelming and confusing trying to understand your position. If you need help and straightforward legal advice about unmarried couple’s property rights, you can book a consultation with us.
How can Britton and Time Solicitors help?
We understand that property laws can be confusing to understand. That’s why our initial consultations with our solicitors offer you:
- Unlimited time to go through the details of your case and ask any questions you may have
- An overview of your legal standpoint and your available options
- A precise time and fee estimate for your case
To arrange your initial consultation with one of our solicitors, simply call us on 020 3007 5500.
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