Co-own a property? Here’s why Lasting Power of Attorney matters
There’s a lot to think about when you own a property with someone else – for example, should you be joint tenants or tenants in common. One aspect that is often overlooked is having an appropriate Lasting Power of Attorney (LPA) in place. It might not seem urgent now, but without an LPA, managing or selling a property can quickly become complicated if one of the owners loses mental capacity. And it’s not just about having any LPA – it’s about having the right person appointed as your attorney.
A common mistake: only appointing your co-owner
If you are a couple who jointly own property and only have each other as your sole attorney, that can cause difficulties. This is because, when selling the jointly owned property, two signatures will be required; however, an appointed attorney cannot sign for both themself and on behalf of their partner. It’s therefore vital to have an additional attorney named on your LPA and prepare the document in a way that is appropriate to all your circumstances while you’re both capable of doing so.
What happens if you don’t have an LPA?
If one co-owner loses capacity and does not have an appropriate LPA in place (irrespective of whether they own the property as joint tenants or tenants in common), the other owner would need to make an application to the Court of Protection to appoint a replacement trustee. This can take a long time, so you risk losing a buyer or delaying the sale of the property at an already stressful time.
Don’t do it yourself
It is all too tempting to cut costs by making your LPA yourself online; however, the number, choice and arrangement of the attorneys becomes very important in relation to the future smooth-running of the property’s sale. Careful thought needs to be given to the appointment of the attorneys, who they are and how exactly they are appointed in the document. It’s therefore strongly recommended that you seek professional legal advice to avoid pitfalls, mistakes, and unnecessary expenses.
We’re here to help
Thinking ahead is key to protecting your interests—and your peace of mind. Getting your affairs in order now can save you significant costs in the long run – and we are here to guide you through the process.
If you’re unsure whether your current arrangements are right for you, or if you need help setting up an LPA, our team is happy to help. To find out more, please do not hesitate to contact Lesley-Ann Mayhew or Katharina Vidojevic.
