Declaration of Trust

Snakes_Belly

'Have they ever contributed or received money relating to the property' co-owner has contributed and received benefits. Unsure if the co-owner has actually received monies. Borrowing was joint. Other party contributed and received monies.

'Did they do a trust deed but can't remember what it said'
No idea.

'Do they remember what they thought they were buying into'

They thought that they had some beneficial interest but were not certain as to whether this had been legalised. There is a disagreement over the beneficial interest. It's not as clear cut as two people buying a property and putting equal amounts in. The co-owner has increased the equity in the property though.

'Why do they think they have a beneficial interest.' It was always understood that they had an interest in the property but was not aware how this had been arranged. Mortgage was joint so both parties would have been jointly and severally liable for the debt.

getmore4less

If this was a split of rental income what were the shares?

If they think they have a beneficial interest on what basis are they calculating it.

Snakes_Belly

Can I send you a PM please. Thank you.

getmore4less

How are they working out what they each own.

What share of the income did they get

Snakes_Belly

The co-owner initially repaid the joint mortgage for a number of years. The other party has offered the co-owner a sum which represents around 13% of the market value of the property. The co-owner spent a considerable sum in renovations to the property.

The co-owner has never received any income from the property. In terms of what they initially put in the other party put in 35% of the asking price and the co-owner spent 21% of the asking price on renovations.

For a number of years the co-owner was residing in the property and paying the joint mortgage repayment via a joint account. Then the co-owner moved into another property and the property in question was let out to a private tenant by the other party. The co-owner has never received any income from the property. The mortgage has now been repaid.

My view is that the co-owner should be receiving more than 13%. It would be preferable if this could be settled amicably.

getmore4less

With a full cash flow history it will be possible to work out something reasonable with a range based on assumptions like guessing value at various points.

Snakes_Belly

Thank you.


Just one more question please. If there is a declaration of trust in place which gives the other party 100% entitlement to the income and sale value then could this be challenged? My guess is that it could but it could become costly and would be better to try to negotiate with the other party.

The co-owner even if they have no beneficial interest will still have to sign the paperwork for the sale to go through. The sale could not go ahead without the co-owners signature.

SmashedAvacado

Snakes_Belly wrote: »

Thank you.


Just one more question please. If there is a declaration of trust in place which gives the other party 100% entitlement to the income and sale value then could this be challenged? My guess is that it could but it could become costly and would be better to try to negotiate with the other party.

The co-owner even if they have no beneficial interest will still have to sign the paperwork for the sale to go through. The sale could not go ahead without the co-owners signature.

The unhelpful answer is "it depends". But possibly. if your friend is a joint legal owner of the property - which you have indicated is the case, the property cannot be sold without your friend executing the sale deed along with the other co-owner. If your friend is worried about fraud, they could put a unilateral notice on the title or just sign up to the Land Registry;s notification alerts which would not stop activity on the title but would warn them that some has gone on.

Land_Registry

SmashedAvacado wrote: »

The unhelpful answer is "it depends". But possibly. if your friend is a joint legal owner of the property - which you have indicated is the case, the property cannot be sold without your friend executing the sale deed along with the other co-owner. If your friend is worried about fraud, they could put a unilateral notice on the title or just sign up to the Land Registry;s notification alerts which would not stop activity on the title but would warn them that some has gone on.

Property Alert yes. But if they are a joined registered legal owner then then a unilateral notice would be a no. Their interest is already protected by being a registered owner

Snakes_Belly

Thank you all for your help. If the co-owner was to order a copy of the deeds would that show whether a declaration of trust or deed was in place.