Invested in someone else’s property? Here’s how to get your money back 

It’s a surprisingly common scenario: you help pay the deposit for a house, contribute towards renovation costs, or cover bills and mortgage payments, but your name isn’t on the legal title. Then something changes, maybe a relationship ends, or there’s a falling out with a friend or family member and you start asking: can I get my money back and/or share in the uplift? 

Under English law, if you’ve made financial contributions to a property you don’t legally own, you may be able to recover what you’ve put in, but it’s not always straightforward. The key legal route for this is through a court application under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA). But to understand how TOLATA works, we need to first explore some equitable principles. 

Legal vs. beneficial ownership: what’s the difference? 

When a property is purchased, the person whose name is on the legal title (or deeds) is the legal owner. But in equity (a branch of law that focuses on legal fairness), someone other than the legal owner may have a beneficial interest in the property – that is, a right to share in the sale proceeds.  

If the non-legal owner paid towards the purchase price, monthly mortgage repayments or substantial improvements to the property, they might be able to claim a beneficial share in the property under TOLATA, even though the property was not purchased in their name. 

Common situations where this arises 

• You paid part or all of the deposit on a house bought in your partner’s / friend’s / family member’s name. 

• You’ve made mortgage payments or contributed regularly to bills with the understanding that this gave you a stake in the home. 

• You’ve paid for renovations or extensions that increased the property’s value. 

• You inherited or were gifted money, which was used to improve the property – on the understanding that you’d benefit from it. 

These types of scenarios often involve informal agreements or conversations from a long time ago, when nothing was put down in writing. When disputes arise, the court must try to untangle who said what, who did what, and what was truly intended between the parties. 

TOLATA: your legal tool 

TOLATA gives courts the power to determine the beneficial interests in a property and to declare who is entitled to what. You can, for example, apply under TOLATA to: 

• ask the court to recognise your beneficial interest in the property (even if you’re not on the legal title) 

• ask for the property to be sold, and for you to receive a fair share of the proceeds 

• ask the court to determine who has the right to occupy the property. 

Importantly, however, TOLATA does not automatically give you a right to money back or a share in the property just because you contributed financially. What matters is proving that your contribution gave rise to a legal obligation that the legal owner holds part of the property “on trust” for you. 

How can I prove I have a beneficial interest? 

This area of law is heavily fact-dependent and can vary significantly from case to case. Courts look at several factors to decide whether a claimant has an interest in the property. 

A written declaration of trust 

The simplest way to show that you were intended to have a share in the property is if this was documented in writing at the outset. Provided certain statutory formalities are met, such written documents may constitute a declaration of trust. 

Under section 53 of the Law of Property Act 1925, to be a valid declaration of trust the agreement to share the property must be contained in writing and signed by both parties. However, recent case law tells us that the requirement for a signature will be widely construed – even typing your name at the end of an email or a text message will count as a signature.  

Verbal agreements 

Even if there was no written declaration of trust, you might still succeed in a TOLATA claim if it was verbally agreed that ownership of the property would be shared. As such, a great deal of weight is often placed on who said what, and whether this is supported by contemporaneous texts, emails, or WhatsApp messages. 

You would, however, have to show that you relied on the agreement to your detriment (for example, by paying for renovations or giving up other opportunities). 

Direct financial contributions 

Even if ownership of the property was never discussed, your claim may still succeed if you paid part of the purchase price or mortgage. That’s because the courts recognise that people don’t always have express discussions about legal matters. The common intention of the parties can be ascertained by looking at their conduct, rather than just at what they say. Paying towards deposits or mortgages can be persuasive evidence of a common intention to share ownership of the property.  

Where things can get complicated is if the legal owner of the property argues that the money was intended as a gift – an argument which frequently arises when the deposit is paid by a parent. 

Final thoughts 

While it is possible to recover money spent on a property you don’t legally own, doing so usually requires legal action and clear evidence of your contributions and intentions. TOLATA offers a legal framework to assert your rights, but success often hinges on whether you can demonstrate a shared understanding or financial arrangement that gives rise to a trust. 

At Birketts, our specialist Home Ownership Disputes Team regularly advises individuals in exactly these kinds of situations, whether you’ve contributed to a deposit, paid for renovations, or helped cover a mortgage on a home you don’t legally own.  

We understand how personal and financially significant these cases can be, and we’re here to help you navigate your options with clarity, confidence and compassion. 

If you think you may have a claim or you’re unsure whether your contribution gives rise to a legal right, we’re always happy to have an initial conversation with you.