beneficial interest in a property

Family law

Beneficial interest in a property

Beneficial interest in property means that if you’ve contributed to the property in any way, you could be entitled to a share of the benefits, even if you are not the legal owner. Read our expert guide to learn more today.

Meet our family law and divorce experts

Many of our family law solicitors are considered leaders in the field with a significant amount of expertise.

Jenniffer Brunt

Collaborative Lawyer and Family mediator

Rebecca Cliff

Associate

Andrew Ormrod

Senior Associate

One of the UK’s leading specialist law firms.

We are proud to have partnerships with national charities and be recognised in the latest legal directories.

The times best law firms 2023
The legal 500

What does beneficial interest in property mean?

Beneficial interest describes the right to share benefits from a property without being the legal owner. It can entitle someone to live in the home, receive a share of the rental income or share proceeds if the property is sold. The key is that the person with beneficial interest benefits financially or practically from the property, even though the title deeds are held by another party.

Is beneficial interest the same as legal ownership?

Legal ownership means your name appears on the title deeds, which gives you the authority to sell, mortgage or manage the property. A legal owner must always act in good faith if someone else holds a beneficial interest, ensuring they get what they are entitled to. A beneficiary cannot sell or re-mortgage the property, but they do have enforceable rights to the benefits from property.

How is beneficial interest established?

Beneficial interest can arise in three main ways:

  • Express declaration: This is where the legal owner and beneficiary have signed a trust deed declaring the share that each has in the property. This clear, formal document provides the strongest proof of each party’s beneficial share.
  • Resulting trust: When a person contributes to the purchase price but isn’t named on the title, the law may infer that they intended to acquire a share. Financial contributions alone can trigger this type of trust, including paying towards any home improvements.
  • Constructive trust: The court looks at conduct, intentions and any assurances given to the non-owning party and the benefits they would gain from the property.

Talk to our experts now

Call us now on:   0330 041 5869

How can I prove I have beneficial interest in a property?

Establishing beneficial interest often needs detailed evidence including relevant materials include written agreements, bank statements showing contributions to purchase or mortgage payments, and correspondence that confirms verbal arrangements. Witness statements from family, friends or professionals who observed the agreement can strengthen your case.

If you’ve invested time or money improving the property under the belief you would share in its value, records of those improvements and any related expenses are also crucial.

What to do if you believe you have beneficial interest

Acting promptly is vital. At Slater and Gordon, our team of property and trust law specialists can review your circumstances, advise on the most effective route—whether negotiation or court proceedings—and help assemble the necessary evidence.

Our strengths lie in clear guidance, strategic case planning and relentless advocacy. Contact us early to protect your rights and secure the outcome you deserve.

Speak to us today

Call us now on:   0330 041 5869

Why choose Slater and Gordon?

Expertise

We are an award winning law firm and have a dedicated team of family solicitors to advise and guide you – no matter how complex your situation may be.

Affordability and advice

We offer affordable, expert legal advice on divorce and child arrangements. Book a consultation for clear guidance and next steps. Our assessment helps you understand your situation and make informed decisions. Consultation charged at £150 for 45 minutes.

Tailored advice

We understand that family situations differ – so we are able to provide tailored advice and guidance to suit your individual needs.

Local access

We are a national law firm, with legal experts available locally across the UK. Meetings can be arranged via telephone or video call, to suit your requirements.

Speak to one of our family law experts today

Call us now on:   0330 041 5869

Frequently asked questions about beneficial interest in a property

What is the rule of beneficial interest?

The rule of beneficial interest means a person can enjoy the benefits of a property, whether that’s income from rent or sales, or residing in the property, even if they are not the registered legal owner.

What is a declaration of beneficial interest in a property?

A formal statement, usually in writing, that sets out who holds beneficial interest and in what proportions, creating an express trust.

Can a beneficial owner stop the sale of a property?

Yes. If you can prove a beneficial interest, you can obtain a court injunction to prevent sale or transfer until your rights are addressed. You will need to act quickly, however and it is advised to seek legal advice.

Search our website
Filter
Filter:
Sorry, we have no results to show
Please try a different search term.
Oops, something went wrong
Please try typing in your search again.
Back to top

Head over to our Scotland website

Visit Slater Gordon Scotland