When relationships break down, disputes often arise about who has the right to remain in a property or who has a financial interest in a property. Whether you are going through a divorce or a cohabitation dispute, it is important to understand the different ways in which your interest can be protected at the HM Land Registry. Two common protections are Home Rights Notices and Unilateral Notices. Although both can be entered on the title register, they apply in different circumstances.
Home Rights Notices
A Home Rights Notice is a protection available to a spouse who has a right to occupy a property that is legally owned by their husband or wife.
This protection is commonly used during divorce where the non-legal owner/spouse wishes to secure their interest in the family home while financial matters are being resolved. By registering a Home Rights Notice, anyone carrying out a Land Registry search, including prospective buyers and mortgage lenders, will be made aware of their rights of occupation. An unresolved charge placed on the deeds by a third party is a significant disincentive and will flag to prospective third parties that there will be a problem with the property being provided ‘unencumbered’. In short, this is a huge ‘red flag’ and is not likely to reassure any buyer that a sale would be smooth or quick. The conveyancer will not be able to proceed without resolving this interest. A Home Rights Notice does not give the non-legal owner/spouse legal ownership of the property. Instead, it simply protects their right to occupy the matrimonial home and helps prevent the legal owner from selling, transferring or remortgaging the property without notification. This can most commonly arise where there are concerns about the spouse attempting to get rid of the asset, with a view to frustrating a financial claim.
A Home Rights Notice can be registered by submitting Form HR1 to HM Land Registry without a fee and the application can be made without the consent of the legal owner. In most cases, a Home Rights Notice will end when divorce or financial remedy proceedings are concluded, a Court orders its removal, the parties agree that it should be withdrawn or the applicant passes away. Registering a Home Rights Notice can provide valuable security while long-term arrangements regarding finances and housing are being agreed. This places the parties in a position of parity where there is less urgency to prevent undesirable actions taking place. In order for the legal owner to dispute the notice, the easiest avenue is for them to provide evidence to HM Land Registry that you are both now formally divorced. For this reason, it is advisable for the non-legal owner to also seek an undertaking (legal promise) on divorce that the Final Order will not be applied for, or to ensure this is opposed if the legal owner proceeds. This can often be assisted by the non-legal owner applying for the divorce as a sole applicant.
Unilateral Notices
Unlike married couples, cohabiting couples do not benefit from home rights under the same law. As a result, individuals who are not named as legal owners of a property may need to consider alternative ways of protecting their interests.
One way to do this is via a Unilateral Notice. A Unilateral Notice will appear on the Charges Register of a title deed and acts as a record of a person's claimed interest in a property, similar to when there is a mortgage. This type of protection is particularly relevant in cohabitation disputes where one party believes they have acquired a beneficial interest in a property despite not being named on the title deeds. Such claims frequently arise in proceedings under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA), where a party may seek to establish an entitlement to a share of a property based on financial contributions, agreements or intentions during the relationship.
An application for a Unilateral Notice can be made via the Form UN1 without the consent or prior knowledge of the legal owner. A Unilateral Notice does not prevent a property from being sold however, it ensures that third parties are put on notice that another person asserts rights over the property, usually deterring them from purchasing the property without that parties’ consent. As above with matrimonial law, this is commonly used where the legal owner seeks to frustrate or ignore a claim for beneficial entitlement by selling or transferring the property out of their hands.
For cohabitees pursuing a TOLATA claim, applying for a Unilateral Notice can be an important step in protecting a claimed beneficial interest while negotiations or Court proceedings are ongoing. This means that negotiations can take place without time pressure and without unfair duress being placed on a party to downvalue their claim prior to any completion, for fear of receiving no compensation.
In cases where there are concerns that a property may be sold before an agreement is reached, it may also be appropriate to apply to the Court for an interim injunction. This can help preserve your position and can offer more flexibility. For example, the Court could also permit a sale to take place on the provision that the net sale proceeds remain held to order by the conveyancer or a third party.
Protecting your position in relation to property is extremely important following the breakdown of a relationship. The appropriate form of protection will largely depend on the nature of the relationship and the rights being claimed. Obtaining early legal advice can help ensure that any rights or interests are properly protected. Whilst the Court do have several powers to ensure that interests are appropriately dealt with regardless of dissipation, it is far harder for a non-legal owner to trace and claim dissipated funds back than to take protective steps early on.
Ella Vine
Ella Vine graduated in Law from Cardiff University and developed her commitment to Family Law through frontline Court volunteering, supporting individuals without legal representation.
She also led the University’s Innocence Project, overseeing investigations into potential wrongful convictions. Ella has since built practical experience as a paralegal and brings an organised approach to client support.
