Property
held in sole name
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 none 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
none 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 none 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
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 none owing 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 none
owning party. This is done by completing Land Registry Form
RX1. This can be
downloaded for free from the
Land
Registry Web site. 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 none owning
party would have the opportunity to substantiate his claim. A stronger way
of dealing with it would be to say that the none 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
and click the button next to it to begin the download.
If you would like some guidance in choosing which suits you best then try our Trust Deed Selector
|
Trust Deed - property in sole name in trust for self and
co-owner - no mortgage. Sale proceeds divided in percentage shares |
£20 |
 |
|
Trust Deed - property in sole name in trust for self and
co-owner - with mortgage. Sale proceeds divided in percentage shares |
£20 |
|
|
Trust Deed where one party's share is a fixed sum of money
irrespective of the value of the property. No mortgage on property |
£20 |
|
|
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 |
£20 |
|
|
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 |
£20 |
|
|
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 |
£20 |
|
If
you are interested in a trust deed relating to a property held in joint names
then click
here
You should also consider whether the transaction constitute a disposal of an
interest in land for Stamp Duty
Land Tax
purposes. If the trust deed is simply
recording the existing position then 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. Click here
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 -
click
here for more information.
The
documents downloaded from this web site will be in the form of a Zip file. Once downloaded it will unzip to a Word
document. You will need a zip utility to unzip the document - Windows XP
contains a built in utility. Alternatively shareware versions suitable for
unzipping a file can be obtained from the Internet - for example, click the Winzip
button at the side of this page.
The
documents available on this site have been prepared for use in England &
Wales. They may not be valid if used in other areas.
