Joint Proprietors and Leasehold Covenants

If you jointly own a leasehold property, it is important to understand your legal responsibilities—particularly when it comes to the covenants contained in the lease. These obligations are not just administrative; they carry real legal weight and financial risk.

Joint and Several Liability

Where a property is owned by more than one person, the proprietors are typically registered as joint owners on the Land Registry title. Each owner is jointly and severally liable for the covenants in the lease.

Essentially, every named proprietor can be held individually responsible for the full extent of any obligations or breaches. For example, in the case of ground rent or service charge arrears you may find yourself fully accountable for the full amount of arrears. Moreover, this also applies to repair obligations and or restrictions. Each joint owner is fully accountable, irrespective of how ownership is shared in practice.

Separation from the other registered proprietor

A common misunderstanding arises when one joint owner moves out of the property. It is often assumed that moving out or no longer paying towards a mortgage for example, ends their liability. However, this is not the case.

Unless and until your name is removed from the title register, you remain legally liable, jointly and severally that is,  for the covenants in the lease. This means that former partners, relatives or even business associates can continue to face legal action arising from breaches or unpaid charges long after they’ve left the property.

Protection

Firstly, understand the terms of your lease before entering into joint ownership. A lot of leases were drafted many years ago and contain a lot of archaic language, it would be best to get legal advice on any points you are unsure of.

Secondly and in connection with the above is to ensure you seek legal advice before moving out, altering the property or stop paying towards a management company for example. 

Finally, if you are exiting joint ownership, ensure that a formal transfer of title is completed at the Land Registry, and obtain appropriate indemnities where necessary.

If you have any question regarding joint tenancy’s or leasehold properties, please do not hesitate to contact our team here