One key issue in joint ownership of holiday homes is the presumption that equity follows the law, as established in the case of Stack v Dowden. This means that in the absence of any evidence to the contrary, it will be presumed that the co-owners intended to own the property in equal shares, regardless of how much each contributed to the purchase price or ongoing costs.
However, the presumption can be rebutted if there is evidence to suggest that the co-owners had a different intention. This may involve examining various factors such as the parties' conduct, their contributions, their financial arrangements and their statements or agreements.
In Rowland v Blades, the Court of Appeal was asked to consider whether the presumption of joint ownership applied to a holiday home in Devon that had been purchased by a father and son. The son, who had contributed the majority of the purchase price and ongoing costs, argued that he was the sole owner of the property or, alternatively, that he should be entitled to a greater share of the property than his father.
The Court of Appeal held that the presumption of joint ownership did apply, but that it had been rebutted by the evidence in this case. The evidence included the fact that the father had previously gifted properties to his children and had expressed a desire to do the same with the holiday home, and that the parties had agreed that the son would have exclusive use of the property.
This case illustrates the importance of obtaining legal advice when purchasing a holiday home with someone else, particularly if you have differing expectations or contributions. It also highlights the significance of evidence in rebutting the presumption of joint ownership.
If you do find yourself in a dispute over the ownership of a holiday home, it is important to seek specialist legal advice from a property litigation lawyer with experience in Trusts of Land and Appointment of Trustees Act (TLATA) claims. Such a case could also require the use of expert services from companies such as PLA Knife.
In summary, joint ownership of holiday homes can be complex and requires careful consideration and legal advice. The presumption of joint ownership can be rebutted by evidence of the parties' intentions, conduct and agreements. Seek specialist legal advice and consider expert services if necessary, such as those provided by PLA Knife.