Often, the majority of an estate’s value will be tied up in the deceased’s property or a share in a property to which their estate then becomes entitled.
The personal representatives of the deceased’s estate may then be faced with the difficulty of how to realise the value of the share of the property which needs to pass to their beneficiaries, taking into account there may be another person with an interest in the property as co-owner. This can be a particularly sensitive situation to handle, particularly when the co-owner is living in the property. Early legal advice should be sought by the personal representatives to understand how best to proceed.
In cases where the deceased owned a property outright, the beneficiaries may decide to have the deceased’s property transferred to them in order to benefit from rental income or even take up shared occupation of the property.
Disputes can arise when one of the owners decides they wish to sell, but the other refuses to agree to sell or cannot afford to buy out the co-owner. We have also seen cases where one co-owner has lived in the property to the complete exclusion of the other, creating a stalemate.
Depending on the circumstances, the owner wishing to sell could bring a claim under the Trusts of Land and Appointment of Trustees Act 1996 (“TOLATA”) for a sale of the property and seek payment of rent by the person living in the property.
The extent to which rent can be claimed depends on a number of factors including the condition of the property, which can in itself lead to further dispute when one of the parties has caused damage or has allowed the property to fall into disrepair.
If you require our assistance, we can help you to explore the options and we are happy to talk to you initially on a no-cost, no obligation basis to see how we may be able to help you. You can contact us on 0151 600 3170 or via the enquiry form here.
