{"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
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 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
The declaration of trust must be executed as a deed\nand is then recorded as a restriction on the title at HM Land Registry.<\/p>\n\n\n\n
When buying as joint tenants, each party has an\ninterest in the whole property. If one of the buyers dies, then their share\npasses to the survivor. This is called the \u201cright of survivorship\u201d.<\/p>\n\n\n\n
Therefore, any interest a buyer has in the property\nterminates on death, even if a will has been made, and so the deceased owner\ncannot pass on any share of a property owned as a joint tenant.\n\nIf you are buying a property, whether residential or commercial, with\nanother party make sure you understand which method of ownership is best suited\nto your situation. The property solicitors at Scott Bailey in Lymington are\nhighly experienced in advising clients on all manner of property transactions. Get\nin touch to learn more about how we can help with your residential conveyancing\nmatter.\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"
When buying a residential or a commercial property with another person, how the parties determine the ownership is very important, and it is therefore vital to have an understanding of the different options available. There are two options that need to be considered: They are slightly confusing terms, as many people (particularly first-time residential buyers) may normally associate the word \u201ctenant\u201d with someone who is renting a property. The main reason to be clear on which option you choose is because it may well determine what happens to the property if one of the owners dies, or (if you are an unmarried couple) you separate. Part of the consideration should also centre around how much each party is contributing to the purchase. Do you wish for this share to be reflected moving forward? Tenants in common Tenants in common is … Continue reading