It is essential that you take legal advice before buying a property jointly with another person. In a recent case the court held that cohabitants owning a home in joint names were entitled to 50% each even though one of them had not lived there nor contributed to it since 1993.  The crucial point was that there was no intention to share differently from 50%. Obviously it is fairly simple to have an agreement setting out different percentages but if people fail to do this then the 50% shareholdings each still stand.

Robert Williams, Hutchinson Thomas' Senior Partner and Head of Litigation, says “This case (Kernot v Jones [2010] EWCA Civ 578) confirms the law.  The couple had bought the house together in 1985 and Mr Kernot moved out in 1993.  Miss Jones continued to live in the property with their two children and paid the rest of the mortgage.  Although the first court gave Miss Jones a 90% share, Mr Kernot appealed and the Court of Appeal said that there was “a total lack of evidence about the parties’ intentions” and overturned the decision. 

"If you propose to cohabit rather than marry, please be aware that there are significant legal differences and take legal advice.  It is not difficult to draw up a document ensuring the percentage shares reflect the intention of the parties.  The percentage shares can even be registered at the Land Registry."

Please call Robert Williams on 01639 645061 for further information.