More couples than ever are buying property together before they get married or enter into a civil partnership. But they should be aware of all the issues.
Richard Theobald, solicitor at Buss Murton, commented: “Finding and buying the right property is an exciting prospect. But it is important, especially for cohabitants, to take account of some important issues before they sign anything.”
Firstly, potential cohabitants should take extra care over financing the purchase. In many cases, one person will put in most of the deposit money, either from their own savings or a gift from their parents. It is essential to take advice on protecting this contribution in the long term as, otherwise, there is no guarantee that it will be taken into account if the relationship came to an end and the property had to be sold.
The property should be bought in joint names as if it isn’t one of the purchasers could find themselves in the position of having made a financial contribution to the property without any legal entitlement to a share if it is sold or no legal right to live in the property if the relationship came to an end.
Cohabitants also need to consider what will happen if one of them dies. Depending on how the property is owned, it may not follow that it will pass to the survivor. Cohabitants should seek advice, for example, on drafting a will to ensure that their share in the property passes to the person of their choice.
“Taking account of these and similar issues before the property is purchased,” said Richard Theobald, “could save a lot of time, stress and money during what can be a very fraught occasion.”
