Jointly Owned Property
If a property is being purchased otherwise than in the course of a normal marriage or civil partnership situation then it is absolutely essential that professional advice is sought. Even in the former cases, advice is advisable.
There are two ways of owning joint property, and the most common way, particularly where married couples are concerned, is as joint tenants. This ensures that upon the death of either owner the property passes automatically to the other irrespective of what is said in any Will. A joint tenancy cannot provide for different shares in the property at any point.
The second way of owning is as tenants in common and here, you can hold the property in differing proportions e.g. you can hold the property 60/40 or 80/20 and so on. A Declaration of Trust is also then advisable to set out the terms of ownership more fully. However, with a tenancy in common the property does not automatically pass to the other upon death, but passes according to your Will or intestacy (if you have not made a Will).
Therefore, in most cases of ownership where the owners are not married or in a civil partnership, you should consider setting out your respective interests in the property by owning as tenants in common and entering into a Declaration of Trust. It is also frequently used when owners are in a second marriage and may ultimately wish to leave their interest in the property in differing directions.
Joint tenants can always be converted to tenants in common and vice versa. However, we recommend that you seek advice from us upon joint ownership at the earliest stage possible. We will consider your individual circumstances and recommend the best for you.
Please contact any member of our conveyancing team for more information.
