Response to Running Costs - House

Gary,

I think Chris is right about being wary. A solicitor had the following to say about it........

"This can be a complex issue.

A beneficial interest can be gained if there is a specific agreement that one pays e.g. utility bills, e.g to allow the other to pay the mortgage. However, a general contribution to running cost is unlikely to produce a beneficial interest.

Also, the rules are different for different areas of the law - it is different in family law to insolvency law. In the latter, it is more difficult to gain a beneficial interest without having made a direct financial contribution to buying or improving the house, although a specific agreement as mentioned above may be enough. The rights of a non-owner in a family law situation are different - the non-owner is likely to have greater rights. We usually refer people for expert legal advice from a family solicitor or an insolvency practitioner

Re shortfalls, I think that it is very unlikely that a lender will try to pursue someone with no legal interest. If the house is in the sole name of one legal owner I have never came across a case where anyone else has been pursued unless there has been a specific guarantee involved.

I would have thought that Gary's partner is safe as long as she stays sole legal owner.

Hope this helps"

Mark.

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