Property disputes and TOLATA proceedings
The number of unmarried couples cohabiting in the UK is rising. Many unmarried couples do not realise that living together does not give you the same rights as married couples. For example, you do not have an automatic right to the other’s assets even if there are children, and the length of cohabitation does not give rise to a claim.
It is, however, possible for an individual to acquire ‘beneficial ownership’ of a property even if they are not named as a ‘legal’ owner at the Land Registry. This is possible in situations where they have covered mortgage repayments or they have contributed towards renovation work, and there is an understanding that they have an interest in the property.
Disputes between separated couples tend to surround:
- Whether one party has acquired a beneficial interest
- If the property is held by both parties, or a beneficial interest has been established; when and if the property should be sold and who should receive the sale proceeds and in what proportions.
Where there is a dispute; parties are encouraged to reach an agreement through mediation or negotiations as opposed to issuing court proceedings. This should reduce conflict, time and costs.
If parties are unable to reach an agreement then a ‘Letter Before Claim’ will be sent to the opposing party setting out what the applicant is seeking and their legal position.
If the parties are still unable to agree on a way forward, either party may make an application under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA). This gives the Courts powers to resolve disputes and decide who the legal and beneficial owners of a property are, and in what proportions.
A TOLATA claim may also be used:
- To reoccupy a former family home when an ex-partner refuses to leave.
- By parents/grandparents wanting to recover their financial interest in a property.
- To determine the shares each party owns.