If you have bought a property in the name of two people, you have a beneficial interest in it. A beneficial owner has the right to live in the property and occupy it even if they do not legally own it. This also applies to the sale proceeds. If there are two beneficial owners, one of them can choose to sell the property. That person will then be the owner of the remaining 50%. Unless there are specific circumstances, the beneficial owner may have no interest in the property.
In many cases, a beneficial interest is not a legal ownership. It is the right to enjoy the benefits of the property, either financially or practically. While the legal owner is the person listed at the Land Registry, beneficial owners are not. Unless you can identify them, it is difficult to determine their legal ownership. This is where deeds of trust and deeds of assignment become important. The legal owner can enter into one of these deeds to assign a percentage of the property to someone else. For advice from Ascot solicitors, go to www.parachutelaw.co.uk/
One way to establish beneficial ownership is to cohabit with the person who has the benefit of the ownership. A cohabiting couple can establish beneficial ownership in the property by making a joint declaration of their ownership. They can also create a trust and assign a beneficial interest to the non-owner. This way, the non-owner can receive a share of the property’s financial value.