With the current rising interest rates and housing crisis with the number of houses available across the UK being insufficient to meet demand, people are looking to living together in a whole new way.
In the headlines recently (BBC – Bristol renters looking for security turn to housing co-ops), it has been reported that renters are now looking to live together under a Co-Op scheme to escape the rental struggle.
The Co-Op scheme means that people share the houses they live in. It is a legal term for a residence that is owned and controlled jointly by a group of individuals who pay fairer costs in a financial non-profit corporation. Whilst the co-op doesn’t own their unit, it has the right to occupy, relative to the number of shares owned in the unit.
However, whilst this may be a more practical option for people who are renting, this arrangement is not an option for homeowners.
In this instance, we recommend that non-married couples who would like to reside together should consider a cohabitation agreement.
A cohabitation agreement ensures that their interests are protected, and the parties concerned are aware from the outset of their share of the property and the contents therein. In the event of a separation, there is a clear instruction as to how the equity in the property should be divided and, therefore, will save in legal costs and complications in the long term.
If you are looking for a property to purchase with your partner and are not married, please get in touch with our Family Team, FamilyTeam@Jacksons-law.com. We can help to discuss your options with you and ensure that your assets are protected.
