fbpx

Joint Tenancy or Tenancy in Common? This is Why It Really Matters

10th June 2021 By

If you are purchasing a property with a partner, friend, family member or anyone else, your solicitor is bound to ask you whether you intend to own it as joint tenants or tenants in common. A High Court case showed why that is likely to be one of the most important questions you ever have to answer.

The case concerned a wealthy unmarried couple who bought a country house for £1.5 million to serve as their holiday and weekend home. The man paid the entirety of the purchase price and all of the costs associated with the acquisition. The relationship, however, did not long survive the property’s purchase.

The transaction was completed in some haste because the vendor was anxious to achieve a speedy sale. All the documentation that accompanied the purchase stated that the property was to be owned by the couple as joint tenants. That meant that they would own it jointly and equally, rather than in two separate parts as tenants in common. It also meant that, if one of them died, his or her share in the property would pass automatically to the survivor.

The man launched proceedings on the basis that the documentation did not reflect the true position. He asserted that it had been their intention from the outset that he would be the property’s sole beneficial owner and that she would hold her half of it on trust for him. She asserted, however, that she was both the legal and beneficial owner of her share in the property.

In rejecting his claim, the Court found that the documentation accurately recorded their common understanding at the time of the purchase. Their solicitor had explained to them the difference between joint tenancies and tenancies in common, and there had been no declaration of trust in the man’s favour.

The Court declared that they had purchased the property as joint tenants and that nothing had happened in the years since to change that position. It acknowledged that, in one sense, that represented a harsh outcome for the man. However, given their mutual understanding at the relevant time, considerations of fairness were irrelevant to the outcome of the case.

The woman having largely enjoyed exclusive use of the property since the end of the relationship, she was ordered to pay the man £59,958 in occupational rent. The Court acknowledged, however, that she was the overall successful party in the litigation and directed the man to pay 90 per cent of her legal costs.

Source: Concious

Latest News

Removal of Guttering Leads to Costly Court Battle

7th May, 2024 By

Disagreements between neighbours over where the boundary between their properties lies can ultimately lead to litigation costs far exceeding the value of the land in question. In a widely reported case, the removal of guttering that allegedly overhung a neighbouring property resulted in a court appearance. A couple claimed that their neighbour had ripped out guttering at their home. They brought legal action against her, claiming that she had trespassed onto their land, and are seeking nearly £2,000 for repairs. They argue that the guttering was wholly on their own...

Retired Businessman's Final Will Ruled Invalid

2nd May, 2024 By

Having your will drawn up professionally by a qualified solicitor is always a sensible precaution, especially in later life. In a recent case, the High Court ruled that a retired businessman lacked testamentary capacity when he made a will less than three and a half years before he died at the age of 87. The man and his first wife were married for nearly 40 years and had four children. After her death he married again. In October 2015 he made a new will, revoking in most respects a will...

Company Owner's Negligible Value Claim Unsuccessful

29th April, 2024 By

When an asset falls in value to the point that it is almost worthless, it may be possible to make a negligible value claim under Section 24 of the Taxation of Chargeable Gains Act 1992. The asset will then be treated as if it had been sold and immediately acquired again, so that the loss can be set off against other income. For a claim to succeed, however, the asset must have become of negligible value during the time the claimant owned it. On 30 September 2017, a woman who...

Court Sanctions Leg Amputation for Man Lacking Mental Capacity

24th April, 2024 By

The courts are often called upon to sanction treatment for patients whose ability to make decisions for themselves is impaired. In a recent case on point, the Court of Protection had to decide whether it was in the best interests of a man with mental health issues to have his right leg amputated above the knee. The man, aged 60, was taken to hospital by his niece. He was found to have an ulcerated leg. He had a history of paranoid schizophrenia, and believed that the sores on his leg...