When you purchase a property with another person you will be asked upon which basis you want to own your property – as joint tenants or tenants in common.
Joint tenancy is when you buy a property with another person and own it in equal shares. If one owner passes away then the property will automatically transfer to the other under the ‘right of survivorship,’ regardless of any other arrangements specified in a will.
- Equal rights to the entire property
- Property automatically transfers to other owner should you pass away
- Cant pass ownership of the property in your will
- You must get the other owners agreement to sell or remortgage the property
- Often used by married couples
Tenants in common
As an alternative to joint tenancy you may want to own a property as ‘tenants in common.’ This is when 2 or more tenants acquire a specified share in a property. There is no ‘right of survivorship’ in this case, and ownership would be transferred through their will.
- You are able to own different shares of the property
- You can pass on your share to someone else in your will
- Often used by siblings, friends or re-married couples with children
When deciding between joint tenancy and tenants in common there are a range of factors to consider.
Some things you may want to bear in mind include:
- What would you want to happen to your share of the property should something happen to you?
- Is your financial position similar enough to share everything equally?
Severance of joint tenancy
If you already own a property as a joint tenant, then it is possible to change the nature of ownership by ‘severing’ the joint tenancy. Peter Robinson & Co. can advise you on the processes that come hand in hand with this and the reasons for severing a joint tenancy.
We at Peter Robinson & Co. are proud to offer a complete service to all our clients. Our friendly, qualified staff are on hand to professionally assist you with different types of ownership, and guide you on what path to choose when buying a property.
Contact us at Peter Robinson & Co. for more information.