Home and Housing
Buying a partner out of a property
Summary
The legal right to buy out your co-owner depends on how you own the property beneficially and whether you have a co-ownership deed in place which contains the right to buy out your co-owner. Under English law, property is jointly owned under what is known as a trust for sale. This generally means that if 1 owner wants to sell the property, unless there is a compelling reason for the other owner to refuse, the property should be sold. Note that this doesn't mean that there is any right to insist that a co-owner sells his or her share to the other co-owner. The only way to legally ensure this happens is to create a right in a co-ownership deed or other form of contractual document. Aside from the legal right, an agreement to buy out often occurs by negotiation, generally starting with valuing the equity. * Assess Your Position – we’ll review documents such as a Transfer Deed or Co-ownership Deed enetered into when you bought, to clarify your legal rights and responsibilities. * Negotiate the Buyout – we can assist in negotiating with your co-owner to agree on a fair valuation and clear terms for the transfer of their share. * Liaise with Mortgage Lenders – we work with your mortgage.
Key information
- Assess Your Position – we’ll review documents such as a Transfer Deed or Co-ownership Deed enetered into when you bought, to clarify your legal rights and responsibilities.
- Negotiate the Buyout – we can assist in negotiating with your co-owner to agree on a fair valuation and clear terms for the transfer of their share.
- Liaise with Mortgage Lenders – we work with your mortgage provider to arrange any necessary refinancing and release of your co-owner from the existing mortgage.
- Manage the Conveyancing Process – our conveyancing solicitors can handle all legal formalities on the property law aspects, including Land Registry updates and completion arrangements.
- Resolve Disputes – if you’re unable to reach an agreement, we can advise on negotiation, mediation, or, where necessary, court proceedings.
- Highlight Potential Tax Implications – while we don’t provide tax advice, we’ll make you aware of any areas where you may wish to seek independent tax guidance.
- Joint Tenants \- if you own the property as joint tenants, there is a presumption that you own the equity in 50:50 shares. However, you can negotiate a "severing of joint tenancy" agreement, essentially converting ownership to tenants in common, which may help in improving your prospects for buying the other party out of the house or flat.
- Tenants in Common \- this ownership type means that the owners shares are separate legally and is the most common way to co-own properties for unmarried couples or co-owners who are not in a relationship.
- The legal right to buy out your co-owner depends on how you own the property beneficially and whether you have a co-ownership deed in place which contains the right to buy out your co-owner.
- Under English law, property is jointly owned under what is known as a trust for sale. This generally means that if 1 owner wants to sell the property, unless there is a compelling reason for the other owner to refuse, the property should be sold. Note that this doesn't mean that there is any right to insist that a co-owner sells his or her share to the other co-owner. The only way to legally ensure this happens is to create a right in a co-ownership deed or other form of contractual document.
- Aside from the legal right, an agreement to buy out often occurs by negotiation, generally starting with valuing the equity.
- Assess Your Position – we’ll review documents such as a Transfer Deed or Co-ownership Deed enetered into when you bought, to clarify your legal rights and responsibilities.
Practical guidance
Related topics
More in this area
Sources
- Taylor Rose — Buying a partner out of a property
This is signposting information from the Legal Shaman wiki, not legal advice. Always consult a qualified solicitor for your situation.