Here you will find frequently asked questions and explanations of some of the jargon and legal language associated with the home moving process.
- How do I own property jointly with others
If you are buying a property with one or more other people, there are two ways in which you can jointly own property and you must decide which of those two different ways suits you needs and circumstances best. You can decide to own the property as either Joint Tenants or as Tenants in Common.
“Tenant” in this context is NOT the same as someone renting a property.
- What is owning property as Joint Tenants
Owning property in this way, each person owns the entire property. This means that if one owner were to die, then the surviving owner would own the property entirely. This approach is common for people who want to leave the property to each other after they die and many married people hold their property in this way.
A Will stating otherwise would not be able to override this because the property will have transferred to the survivor before a Will would come into effect. Only the survivor’s Will would then be considered as to who receives a share of the property on their death. This can mean that children from a previous relationship, will not inherit a share of the property, unless the survivor has also included them in their Will.”
- What is owning property as Tenants In Common
Owning property in this way, each person has a share in the property. That share can be split equally (for example 50/50), or it can be split unequally (for example 75/25). You may choose to unequally split the share in the property if, for example, one person has contributed more towards the home buy than the other person.
This way also allows each person to prepare a Will deciding to leave their share in the property to someone other than the surviving co-owner. For example, leaving the share to children from a previous relationship.
You would need a formal document known as a “Declaration of Trust” in order to register your interests in the property under a Tenancy in Common. We are able to prepare this for you and there is an additional fee for this work.”
- How do I choose between owning as Joint Tenants and Tenants In Common
You will need to decide for yourselves between owning as Joint Tenants and Tenants in Common and which approach is best for you and your circumstances. You will need to make your decision, and provide this to us in writing, before the Exchange of Contracts. We are not able to advise you on any taxation implications relating to the options open to you.
Please note that all information provided in this FAQ is for general reference only. It should not be used as a sole or definitive source, nor is it intended to be used for decision making in place of appropriate advice from a qualified legal professional. As such the information is provided as-is and Brevis cannot accept any responsibility or liability for any loss or damage resulting from any errors or ommission in, or any reliance on, information contained in this guide.