Land registry restriction "No disposition by a sole proprietor..."

BunnyBurrow

Hi

Can someone tell me what this restriction means please? It is stated in the title register of a property I am interested in buying.

"RESTRICTION: No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court."

I've read it 13 times and I still can't understand it

Thanks!

JGB1955

It just means that it's held as tenants-in-common.  Should make absolutely no difference to your purchase.

woodpeckerx

https://www.gov.uk/government/publications/private-trusts-of-land/practice-guide-24-private-trusts-of-land#:~:text=“No disposition by a sole,Act 1925 are complied with.

sourpuss2021

Two owners each own a 50% share of a property, and one can't sell without the other's agreement.

badger09

sourpuss2021 said:

Two owners each own a 50% share of a property, and one can't sell without the other's agreement.

Not necessarily just 2 owners, and not automatically 50% share😉

sourpuss2021

When one of the owners dies, what happens?

I'm thinking of a situation where two people have co-owned a rental property for decades and the capital gains bill would be a considerable six-figure sum.

My impression is that these current owners plan to leave the property to their children or partners who won't have to pay this tax.   But naturally they are unlikely to pass away at the same time!

I suppose the survivor might then have the option of buying out the deceased person's share.  But it mightn't be the best use of money - though depending on the size of the tax bill they wanted to avoid!

Or otherwise would the beneficiaries have to keep the money tied up in the rental property until the second co-owner passed away?

RoseBerni

That was on the deeds of my late parents house 
when my mum passed away her 50 percent was left in trust to my son & my sister 
my dad still owned his 50 percent 
my sister and myself then were put on the deeds by the solicitor to protect my mums 50 percent 
So my dad owned his 50 percent and had the right to remain in the property and my sister & I were trustees of my mums half 
so none of us could sale without the others agreeing to sale 

Noneforit999

I believe its done to protect 50% of the house value from being used to pay for care for the surviving person.

So two people have 50% each as tennants in common, each person leaves their 50% of the house via a will to one or more beneficiaries.

If the surviving person needs to go into a care home, only their 50% of the house can be used to pay for it. The other 50% will belong to whomever the other person names as a beneficiary in the will when they died.

Mojisola

Noneforit999 said:

I believe its done to protect 50% of the house value from being used to pay for care for the surviving person.

So two people have 50% each as tennants in common, each person leaves their 50% of the house via a will to one or more beneficiaries.

If the surviving person needs to go into a care home, only their 50% of the house can be used to pay for it. The other 50% will belong to whomever the other person names as a beneficiary in the will when they died.

It can also be used to protect half of the property value for children in case the surviving spouse remarries, or in the case of a blended family, to ensure the children of the deceased get a share of the estate.  

badger09

Mojisola said:

Noneforit999 said:

I believe its done to protect 50% of the house value from being used to pay for care for the surviving person.

So two people have 50% each as tennants in common, each person leaves their 50% of the house via a will to one or more beneficiaries.

If the surviving person needs to go into a care home, only their 50% of the house can be used to pay for it. The other 50% will belong to whomever the other person names as a beneficiary in the will when they died.

It can also be used to protect half of the property value for children in case the surviving spouse remarries, or in the case of a blended family, to ensure the children of the deceased get a share of the estate.  

This is our situation. 2nd marriage, each have a, now adult, son. Husband & I own (& always have) our home as Tenants in Common, with our 50% going to our respective sons. Surviving spouse has life interest, so can’t be forced to sell. Not that our sons are likely to do that and survivor would almost certainly downsize😇