Sole Ownership

Where the property is held in the sole name of one person then it is possible for another person to have an interest in it.
 

This would commonly arise if a third party had provided some of the purchase price or paid for improvements to the property, or if there is a cohabitee - whether married or not.

This type of arrangement works where everyone is in agreement and there is no possibility of the non-owning party wanting to realise their share of the property before a sale. It is passive in nature i.e. it gives no rights to enable the non owning party to force a sale - merely says that as and when the property is sold an agreed payment will be made to them. If you want an arrangement that gives the non owning party the ability to force a sale then you would need to create a legal charge over the property.

The same consideration about the way in which the sale proceeds can be shared need to be addressed as with a jointly owned property, see Useful links.

One additional point though that needs to dealt with is some protection of the interest of the none-owning party. For example, whatever the trust deed may say, what is to stop the legal owner of the property from selling or mortgaging the property without telling the other party? The answer to this is that in some way the non owning party should register an entry at HM Land Registry against the title.

The entry that is registered would usually be a restriction which would say that there should be no dealing with the property without the consent of the non owning party. This is done by completing Land Registry Form RX1. This can be downloaded for free from the Land Registry Website, see Useful links. HM Land Registry charge a fee for registering the restriction. The fee is presently £50.

The form of the restriction that you would enter would be something along the lines of the following:

“No disposition of the registered estate is to be registered without a certificate signed by the applicant for registration or his conveyancer that written notice of the disposition was given to [name of person having benefit of restriction] at [address for service].”

This means what it says i.e. the legal owner would need to give notice of the intended disposition before applying to register it. Thus the non owning party would have the opportunity to substantiate his claim. A stronger way of dealing with it would be to say that the non owner actually has to consent to the sale - but generally the legal owner would consider this unduly restrictive.

Choose the document from the list below which most closely fits your circumstances. If you would like some guidance in choosing which suits you best then try our Trust Deed Selector, see Useful links.

Trust Deed
Property in sole name in trust for self and co-owner - no mortgage. Sale proceeds divided in percentage shares.
Download Now
£20.00
Buy now
Trust Deed
Property in sole name in trust for self and co-owner - with mortgage. Sale proceeds divided in percentage shares.
Download Now
£20.00
Buy now
Trust Deed
Where one party’s share is a fixed sum of money irrespective of the value of the property. No mortgage on property.
Download Now
£20.00
Buy now
Trust Deed
Where one party’s share is a fixed sum of money irrespective of the value of the property. Property subject to a mortgage.
Download Now
£20.00
Buy now
Trust Deed
Where one party’s share is a fixed sum of money irrespective of the value of the property and the balance is divided in accordance with agreed percentages. No mortgage on property.
Download Now
£20.00
Buy now
Trust Deed
Where one party’s share is a fixed sum of money irrespective of the value of the property and the balance is divided in accordance with agreed percentages. Property subject to a mortgage.
Download Now
£20.00
Buy now

If you are interested in a trust deed relating to a property held in joint names see Useful links.

You should also consider whether the transaction constitutes a disposal of an interest in land for Stamp Duty Land Tax purposes. If the trust deed is simply recording the existing position then it would not constitute a disposition. If though you are using it as a device to transfer a share in ownership then it would. See Useful links for more information.

Trust deeds are designed to regulate the position over the amount and distribution of the equity in the property. If you want to go further and have an agreement that deals with the regulation of the day to day relations between cohabitees then you need to have a cohabitation agreement – see Useful links.

Useful Links
UnZip UnZip
Documents will download as zipped files and will unzip to Word documents.
You will need a zip utility to unzip the document - Windows XP and above contain a built in utility.
WinZip WinZip
World Pay
Maestro MasterCard Visa Visa Debit Visa Electron
The documents available on this site have been prepared for use in England & Wales. They may not be valid if used in other areas.