Joint Ownership and Avoiding Costly Mistakes

The case of Leonard Kernott v Patricia Jones (2010) EWCA Civ 578 is another timely reminder that those purchasing property jointly should give consideration as to how the property should be held prior to completing any purchase. An express declaration as to how they hold the beneficial interests in the property should be made to prevent any uncertainty.

In this case, K appealed against earlier decisions regarding a declaration as to the share of the beneficial interest in a property he co-owned with J. J and K had bought the property in 1985 with a deposit provided by J and a mortgage, the repayments of which were shared. The property was in joint names. In 1993, K moved out and J remained in the house with their two children and made all the mortgage repayments during that time. K subsequently purchased another property. Approximately 12 years after their separation K sought the payment of his half share. J issued proceedings under the Trusts of Land and Appointment