{"id":1855,"date":"2020-02-18T09:22:17","date_gmt":"2020-02-18T08:22:17","guid":{"rendered":"https:\/\/www.scottbailey.co.uk\/?p=1855"},"modified":"2023-03-02T17:38:03","modified_gmt":"2023-03-02T16:38:03","slug":"property-ownership-vital","status":"publish","type":"post","link":"https:\/\/www.scottbailey.co.uk\/news\/property-ownership-vital","title":{"rendered":"Tenants in common versus joint tenants: what does it mean when a solicitor asks how you want to own a property?"},"content":{"rendered":"\n

When buying a residential or a commercial property\nwith another person, how the parties determine the ownership is very important,\nand it is therefore vital to have an understanding of the different options\navailable. There are two options that need to be considered: <\/p>\n\n\n\n

    \n
  1. tenants in common; and<\/li>\n\n\n\n
  2. joint tenants.<\/li>\n<\/ol>\n\n\n\n

    They are slightly confusing terms, as many people\n(particularly first-time residential buyers) may normally associate the word\n\u201ctenant\u201d with someone who is renting a property.<\/p>\n\n\n\n

    The main reason to be clear on which option you\nchoose is because it may well determine what happens to the property if one of\nthe owners dies, or (if you are an unmarried couple) you separate. Part of the\nconsideration should also centre around how much each party is contributing to the\npurchase. Do you wish for this share to be reflected moving forward?<\/p>\n\n\n\n

    Tenants in common<\/h2>\n\n\n\n

    Tenants in common is often the preferred method of\nownership for unmarried couples, business partners or friends purchasing a\nproperty together. Each buyer has a specific share of the property and if you\ndecide to sell up, the proceeds will be divided accordingly.<\/p>\n\n\n\n

    Tenants in common is especially suited to\nsituations where a buyer and their partner are investing different amounts of\nmoney in the purchase, as it can be reflected in the part you own. One downside\nfor an unmarried couple may be that if one of them dies, their share would not\nautomatically pass to the survivor. If the parties want the surviving owner to\nbe able to continue living in the property, it is important to make wills\nleaving the shares to each other.<\/p>\n\n\n\n

    Whatever the shares being contributed to the\npurchase, parties should consider whether they require a \u201cdeclaration of\ntrust\u201d. This document records the arrangement between anyone with a financial interest\nin the property and may include items such as:<\/p>\n\n\n\n