Social trends in this country show that marriage is becoming less and less popular, as couples choose to live together rather than face what can be the considerable expense of a marriage, and what can sometimes be the conflicting loyalties that come with blended families.
Nonetheless, as with any couple, the purchase of the property is a considerable commitment, both emotionally and financially. It is vitally important at the outset, that people living together and not married, who are purchasing a property should agree their respective interests in it. In a recent court decision, a case turned on one party saying to the other “I want nothing to do with the house anymore, it’s all yours”. The parties then separated.
This comment, even if it was made off the cuff, was held by a judge to establish common intention between the parties for one of them to give up entirely his interest in the property. The other partner then went on to pay the mortgage on it: and carry out improvements to it as well.
The court then went on to find that as she has also acted to her detriment, that only cemented the intention of the parties.
The law is a minefield for parties who live together rather than marry when it comes to real property. It is always advisable especially if one party is putting the majority of the purchase monies forward to buy a property on the one hand: or in the other, the mortgage has been taken on in only one party’s name if the other has a poor credit rating: that a co-habitation agreement be drafted and set out clearly what their intentions are as to their interest in the property. These documents can also be viewed as an equivalent to a living will, in that if there is a common intention between the two parties to change or alter their relative interests in the property, then the co-habitation agreement should be amended to reflect that, to avoid any dispute in the future as to who had said what and to whom.
It is far better to meet the cost of a cohabitation agreement or deed of trust when purchasing your home rather than waste what can be tens of thousands of pounds later, arguing over what your true intentions were and often times, relying upon the evidence of third parties or failing memories, as to who had said what to whom.
Please give us a call on 01484 810210 if you would like further advice and we will do our best to help.