Cohabiting? Know your rights
You Gov recently surveyed more than 1,000 cohabiting couples. The results show that 1/3rd believed that purchasing a property together afforded them the same legal rights as a married couple. Unfortunately these people are ill informed – which could have disastrous consequences on their finances should their relationship end.
Cohabitation has more than doubled during the last decade from 1.5 million households to 3.3 million. Cohabitants make up 17.5% of household demographics for the whole of the UK.
75% of those surveyed felt that cohabiting couples should receive the same legal rights as married couples although there are no plans in place to support this.
The best way to protect yourself and your finances for the future is to know exactly what’s what. Ensure you know on which grounds your property was purchased – are you joint tenants or tenants in common?
Joint Tenants
- Have equal rights to the property
- If you die the property will automatically go to the other owner
- The other owner is protected as you cannot express in your Will that the property goes to someone else
Tenants in Common
- Can own different percentages of the property
- The property will not automatically go to the other owner if you die
- You can leave your share to someone else in your Will
Of course you don’t want to think about your relationship breaking down, especially at the point you decide to buy a house together, but you also have to be realistic.
If you need legal advice prior to purchasing a property, please contact a member of our Residential Conveyancing team on 0116 212 1000. They will provide you with the right legal solution for your individual circumstance as they are experts in all areas of law including cohabitation agreements and tenants in common.
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