Recent research has revealed that there has been a rise in home buying in groups. Around 60% of residential transactions a year are by couples or groups of relatives and friends. In some areas of the country, where property is very expensive, 3 or 4 people may pool their resources to purchase a home.
The obvious advantage of buying a property as a group is that it is possible to afford a home, particularly in the South East of England, that would be out of the price range of most single purchasers.
The research shows that over the last 5 years the number of homes bought by ‘single’ purchasers has fallen by an average of 4%.
Interestingly, over the same 5 year period there has been a steady increase in the number of people buying as ‘joint tenants’ and ‘tenants in common’ and in particular those with ‘unequal shares’, highlighting a growing trend in buying as a collective to afford a property.
Married couples tend to purchase a property as ‘Joint tenants’ whereas groups of individuals buying together usually purchase as ‘tenants in common’. The individuals can have equal or unequal shares in the property. A group of relatives or friends who purchase a property as ‘tenants in common’ can pool their resources to afford the best possible home while safeguarding their investment by listing who owns which share.
According to the research those buying as ‘tenants in common’ can afford a property worth up to £100,000 more than if they were buying alone, or £30,000 more if they were buying as ‘Joint tenants’.
If you are considering buying a property with friends or members of your family, Peter Robinson & Co can advise you on joint ownership, as well as severing joint tenancy if clients would like to change the nature of ownership.
For more information go to our website: https://peterrobinsonandco.com/joint-tenancy-what-to-consider/ or contact one of our highly experienced team at Peter Robinson & Co. on 0161 678 7996