Are you considering buying with another person?
When you are buying with another person, whether that person is a partner, spouse, friend or relative, you will need to decide whether to hold the property as “Joint Tenants” or “Tenants in Common”. This is a really important distinction, as it determines in what shares the property is owned by each of you and what should happen to that share in the event of either of your deaths.
Joint Tenants
This type of ownership is most popular with married couples, as it is often their wish that, if they die, their share in the property goes to their husband or wife. If you choose to own your property as Joint Tenants, this means that you both own the property equally. If one of the owners dies, then their share automatically passes to the other owner; this is even the case if you have a Will that leaves your share to someone else.
Tenants in Common
Tenants in Common is for property owners who want to have clear, separate shares in the property. It is popular with friends buying together, as on death the property would not pass to the other co-owner. If you choose to own your property as Tenants in Common this means that you can choose to own the property in equal shares, or unequally. For instance, if one of you will contribute more to the property than the other, you could hold shares of for example say, 25% and 75%. If one of the owners die, their Will decides who gets their ownership share (it will not automatically go to the other co-owners, as it would if you held the property as Joint Tenants.) This type of co-ownership is not just for friends, however, and many couples who, for example, have their own children from prior relationships will opt for Tenants in Common too.
Now you know your options and are committed to buying with another person what should you do next?
If you haven’t already, you should get a quote for conveyancing so you can understand the likely costs involved. Unlike most online conveyancing websites, which only provide you with a basic quote, we have an experienced team on hand from 8:30am to 8pm during the week, to answer any questions you have, and to provide sound advice on each step of the home moving process.
