Property Risks You Must Know Before Buying or Renting
Thinking about a new home? Whether it’s a buy, rent or a shared deal, hidden risks can bite you hard. Below we break down the most common pitfalls and give you clear steps to stay safe.
Joint and Shared Ownership: What Can Go Wrong?
When you own a property with a friend, family member or a co‑investor, you’re not just sharing the mortgage – you’re sharing legal responsibility. If one party stops paying, the whole loan can default. Disagreements over renovations, pets or even who gets to stay in the house can turn a dream home into a courtroom drama.
To protect yourself, draw up a written agreement that covers payment schedules, decision‑making rules and an exit plan. Keep a separate bank account for shared expenses and record everything in writing. If possible, involve a solicitor early – a cheap hour now can save thousands later.
Timeshares and Inherited Property: Hidden Costs and Legal Traps
Timeshares look cheap at first glance, but annual maintenance fees, special assessments and limited resale value can drain your budget quickly. Inheritance adds another layer: you might inherit a timeshare without knowing the ongoing fees or the legal process to transfer ownership.
Before you sign any timeshare contract, ask for a detailed breakdown of all yearly costs for the next five years. If you inherit one, check the deed, understand the local law on tenancy rights, and consider selling or exiting the agreement before fees pile up.
Other red flags include properties with unclear title, missing planning permission, or lands that are prone to flooding. A simple title search at the Land Registry can reveal liens, restrictive covenants or previous owners who never settled their taxes.
Finally, remember that every property transaction carries tax implications. Owner’s draw from a shared house can be treated as income, so keep receipts and consult a tax advisor to avoid surprise bills.
In short, the best way to dodge property risks is to do your homework, get everything in writing and involve professionals when the stakes are high. Stay aware, ask questions, and you’ll keep your dream home a dream, not a nightmare.
