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Land registry & equity(14 Posts)
I moved into DP house in 1999. In 2004 he ended his interest only mortgage & cashed in endowment. We then took out a joint 25 year mortgage to buy some land & extend. We visited a solicitors (no longer in business) to add me to the deeds & purchase the land. At the same time, he gifted me 25% of the equity.
Our relationship is not doing so well at the moment & its possible we may split. I have downloaded the title register & we are both shown on there but no mention of any equity split. He says I am entitled to 25% of the current value after the mortgage deducted. The property was increased in value substantially by the extension. The property was valued at around £90000 when we took the new mortgage out in 2004, I expect it to be £225000 now. My question is where would this document regards the equity gift be? And did that 'fix' my share of the property to 25% forever?
You should have a legal agreement stating what proportion of the property you own. Did the solicitor not draw this up?
As you presumably paid some of the mortgage, I would go and see a solicitor about what you might be able to get. To be fair though, it seems to be his house in the first place. All financial arrangements when you are not married should be written down so everyone knows where they stand. Next time......
Thanks, I will be seeking legal advice. Ive looked through our paperwork but can't find anything relating to the 25% gift of equity. I was trying to find out if I need something different from the land registry to see it so I can be prepared when I see a solicitor.
It was his house he was buying on a mortgage when I moved in, the new mortgage we took together in 2004 paid off his mortgage & provided funds for the extension. The mortgage has always been paid from a joint bank account.
Did you work at the time, do you have children, have you paid as much into the house as him, who did the work?
Thank you for your reply.
Always worked, full time until DS born in 2010, part time since he was 1 year old. He has always been the higher earner, working shifts majority of relationship, he now works days. I have always done childcare (including for his elder DS for a number of years), life admin etc but obviously as we are not married, that doesn't really 'matter' - he will need to pay CM but I dont have any claim apart from on the house.
The extension work was carried out by separate tradesmen paid for out of the joint bank account.
My main question is where would a gift or transfer of equity be recorded as I feel that is going to be the main point of his 'argument'. I do have the £3 land registry document but there is no reference to equity split, both our names shown.
I believe you needed a Deed of Trust stating the ownership arrangement. There could also be a floating share deed. This too might have been drawn up to show the unequal ownership. Are you joint tenants or tenants in common. All of this should have been explained and drawn up by the original solicitor. If not, I don’t think there’s any evidence about what you own and what your partner owns. So your new solicitor might have to do some digging and certainly give you advice.
Land Registry is essentially only concerned with the legal ownership of the property which is in both your names. Beneficial interests can be noted by means of a form A restriction which will appear in the Proprietorship Register as follows:
"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"
If this is on the register you could contact HM Land Registry to see if a copy of a Declaration of Trust was retained by them. It wouldn't necessarily have been lodged and retained but it's a good starting point. Failing that I would try and see who took over the old solicitors engagements. The Law Society might be worth a try.
Thank you for replying. I thought we would be owning the new completed property 50/50 & in the event of our deaths, the other person would inherit the house.
On the title register, both our names are listed dated 29.06 2004. Next is the same date & the text 'The transfer to the proprietor contains a covenant to observe and perform the covenants referred to in the charges register and of indemnity in respect thereof (to do with when the original house was built)
Finally there is a restriction dated last year for the bank when we remortgaged for a fixed deal.
So from this, I think we are joint tenants & that the property is owned 50/50. Its just whether something exists to say i own 25% only. My P is firmly of the opinion it does & i do recall the solicitor discussing him gifting me 25% but I cannot find any record & wondered how that would be recorded if not with the land registry.
Thank you both Guymere & starlingsintheslipst
Appreciate all the help
There would have been a Deed of Trust, a document you and he signed with witnesses, that would then have been returned to the solicitor.
It's very easy for this document to get overlooked amongst the reams of mortgage paperwork. We forgot it, I recently found the unsigned doc, but we've got married since, so it's no longer necessary.
If he didn't get that signed at the time, I believe his talk of 25% is empty.
Just get a copy of the TR1 form (the transfer deed). That is the deed that declared you as joint tenants (you haven't explicitly answered @starlingsintheslipst
Whatever the TR1 declares is what the legal position is.
Thanks ImaginaryCat & Collaborate. I looked through the papers we have from the time we bought the land etc but cant see a deed of trust.
I have the £3 Title register & have read through the charges & covenants but nothing was added relating to me or the date I was added.
Where do I get the TR1 form from please?
I again thank you all for your help. The more information I can get before I see a solicitor will be helpful.
The solicitor who did the conveyancing will have kept a copy. Alternatively you should be able to get a copy from the Land Registry.
Thanks Collaborate. The solicitor firm closed down some years back. I will contact Land registry. Thank you
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