(And Most Haven’t Been Told)
For most of us, our home is our biggest financial asset — and often the centre of family life. Yet surprisingly few people understand how their property is owned, what protections are available, or what happens if illness, loss of capacity, or death occurs at the wrong moment.
I’ve put together a comprehensive guide to help homeowners understand the key issues and avoid the most common pitfalls. This isn’t legal jargon or scare tactics — just straightforward explanations of the things that genuinely matter.
1. The Different Types of Property Ownership
Many people assume that all homes are owned in the same way, but the legal structure can make a big difference.
Freehold means you own the land and the building outright. You’re fully responsible for maintenance, insurance, and boundary issues. Freehold is generally straightforward for Wills and estate planning.
Leasehold means you own the property for a set number of years, but not the land. Ground rent, service charges and restrictions may apply. Some leases can drop in value as they shorten, and extensions can be costly — something attorneys must understand if you lose capacity.
Commonhold (less common) gives you outright ownership of your flat and shared responsibility for common areas. It removes ground rent and provides more transparent management.
Understanding which type you have helps determine your insurance obligations, maintenance responsibilities, and how your estate planning should work.
2. How Joint Ownership Affects What Happens When One Owner Dies
If you own a property with a partner, the form of joint ownership matters:
- Joint Tenants: the property automatically passes to the surviving owner, regardless of your Will.
- Tenants in Common: you each own a defined share, which can be left to someone else through your Will.
For blended families or those wanting to protect children’s inheritance, this difference is crucial. Many people discover too late that the wrong structure has undermined their wishes.
If tenants in common is the better option, the joint tenancy must be formally severed — a simple but essential legal step.
3. Property Trust Wills: A Strong Option for Couples
A Property Trust Will allows one partner to leave their share of the home in trust for their children while still giving the surviving partner the right to live in the property for life.
This can:
- Protect children from previous relationships
- Guard against accidental disinheritance
- Provide resilience if the survivor later requires care
It’s one of the most effective estate planning tools for homeowners, and far more reliable than many “lifetime trust packages” being sold today.
4. The Truth About Lifetime Trusts
You may have heard about putting your home into a lifetime trust to “avoid care fees”. While there are legitimate uses for these trusts, they are often oversold.
Councils can treat such transfers as deliberate deprivation, meaning they ignore the trust and assess you as if you still owned the home.
Lifetime trusts are useful only in certain circumstances — far fewer than most people are led to believe. For most homeowners, a good Will, the right co-ownership structure, and proper powers of attorney offer better protection with fewer risks.
5. Protecting Your Home From Fraud
Property fraud has become far more common, particularly with mortgage-free homes, properties that stand empty, and homes owned by older individuals. Criminals may try to impersonate owners, transfer deeds, or raise loans against the property.
The Government’s free Property Alert Service lets you monitor activity on your title and sends immediate notifications if someone tries to make changes. It’s a quick, simple step that every homeowner should take — and it costs nothing.
6. Buildings Insurance Responsibilities
Who insures the building depends on the type of ownership:
- Freeholders must arrange their own buildings insurance.
- Leaseholders typically rely on the freeholder to insure the building (though contents insurance is still needed) and re-charge the cost. If they forget, you are in trouble too! But they should ensure that their interests are “noted” on the policy or the insurer could potentially sue them if they burn the place down!
- Commonhold owners share insurance responsibilities.
If you lose capacity without a valid LPA, your family may not be able to renew or manage insurance — a surprisingly common problem.
7. Why a Lasting Power of Attorney (LPA) Is Critical for Homeowners
A Will doesn’t help you while you’re alive. If you lose mental capacity and don’t have a Property & Financial Affairs LPA:
- Your family cannot manage or sell your home.
- They cannot access funds for repairs or insurance.
- They cannot deal with lenders, freeholders, or management companies.
- They may be forced to apply to the Court of Protection — slow, stressful, and expensive.
With a valid LPA, your chosen attorneys can manage the property, pay bills, maintain insurance, arrange repairs, or sell the home if necessary.
For homeowners, an LPA is not optional — it’s essential.
8. Download the Full Guide
If you’d like the complete booklet — with examples, checklists, and practical steps tailored for homeowners — you can request a free copy below.
👉 Download your full Home Protection Guide – just request it – email only, I am afraid.
It’s designed to give you clarity, confidence, and peace of mind, whether you’re planning ahead, reviewing your arrangements, or sorting out matters for family members.