Property Share When Name not on Deeds

Published / Last Updated on 06/03/2015

Property Share When Name Not on Deeds.

The Court of Appeal has this week ruled that a lady who was not on the title deeds of a property, he name was not on the property,  nor had she paid any contribution whatsoever to the purchase of the property or any mortgage payments does have a beneficial interest in the property.

The case Graham-York V York 2015 came about because Miss Graham-York and Mr York had an arrangement where he dealt with the property costs and she made significant contributions towards other domestic costs within the home.

Mr York passed away in 2009 having been with his partner Miss Graham-York since 1976. There was still a mortgage outstanding on the property at the time of Mr York's passing and the property was repossessed.

It was argued that Miss Graham-York had a beneficial interest of 50% of the property which was worth around £1.2 million. This was contested by other parties.

The Court of Appeal having taken into consideration the real financial and genral contributions made by Miss Graham-York towards domestic life and expenses ruled that she was entitled and had acquired a beneficial interest of 25% in the property.

Comment

In a Court of Law this principle is similar to the principles of a Lien, which is well established.  A Lien is where you acquire an 'interest' as a form of security granted over an item of property to secure the payment of a debt or performance of some other obligation.   In this case, did all of the other domestic costs and maintence create a lien? 

We suggest that people who are not married but live together and do not make provision for an agreement for distribution of property in the event of death or separation should do so now.  There is no point one partner owning 100% of a property or paying 100% of the property costs and relying on owning the whole of the property should you fall out and separate.  If you are not married or in civil partnerships and cohabiting you must take legal advice now. The precedent has been set by the Court of Appeal this week.

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