What Is Joint Ownership Of A Home?

When it comes to how you own a property in the UK there are a few different options. If you are buying with one other person or more you will want to understand how to legally protect yourself. The two ways you can structure a joint purchase are either under joint ownership or tenancy in common. Which one you should go for really depends on your future intentions and relationship with your co-owners. Here we take a closer look at the key factors of these different types of ownership, how to decide what will work best for you and why you need a property solicitor to get set up.

What Are The Different Types Of Joint Ownership?

The two types of property joint ownership of property in the UK are joint ownership or tenancy in common. If you are buying a home with another person or more, either can be used. They are not the same, so listen up. There are key differences that are important to understand and it is recommended you speak to an experienced conveyancer before making a decision.

Joint Ownership

Buying with joint ownership is most common with married couples or unmarried couples who want to split everything 50/50/. Both parties will be on the title deeds as joint owners. Under joint ownership;

• All parties have an equal share of the property
• There is a right of survivorship that directly passes the property to the surviving owners
• Each tenant has an equal share regardless of financial contribution
• Consent is required from all parties to sell their share
• Both parties are responsible for payments on the mortgage and maintenance to the property

This type of ownership may be right for you if you are both contributing equally or you wish to pass on your share in the property automatically on death. However if you are buying as an investment for a shorter time and all contributing a different amount, a tenancy in common may be a better option.

Tenancy In Common

Buying as tenants in common is more usual with parties who are contributing a different amount to the purchase and wish the title deeds to reflect this. When buying as tenants in common;

• Parties have a share that is equal to their financial contribution
• Ownership can be split to certain parts of the property
• They can sell their share without the consent of all parties
• Responsibilities to the property can be declared in a trust
• More flexibility is allowed via a declaration of trust for all interests to be expressed
• There is no right of survivorship
• Their share can be passed on in a will

This type of ownership may work for you if you want to get back what you put in and you do not want the investment to be split 50/50. It also allows you to pass on your share to children, charities or other loved ones via a will.

How Can You Choose What Type Of Ownership Is Best?

Deciding how to structure the purchase of a property is a big one. Joint ownership has less room for flexibility than tenancy in common. This allows for every party to express their interests and have legal rights if they wish to sell later down the line. Things can change. Many buyers can rush into the process without thinking things through and taking a long-term view.

Firstly, sit down with whoever you are buying with and have an open and detailed conversation about what is in everyone’s best interests. This can be done with a property solicitor who can then advise you on how best to proceed. Being clear and proactive on your legal purchasing structure early on can prevent any complications later down the line and make sure you are protected. Our friendly property team provides straight-forward, expert advice on how to purchase your property and we provide fixed-fees on our premium conveyancing service. Keep things simple and get in touch today for a free consultation before you make your next move.

The Wrap Up

Joint ownership facilitates how more than one person can purchase a property in the UK. This can be done in two different ways, joint ownership or tenancy in common. The former is more suitable for married couples who wish to split their share equally regardless of financial contributions and automatically pass on the property to each other. Tenancy in common may be better if you are buying with friends or investors and contributing different amounts. There is no automatic transfer of share and you can sell on your interest without consent from other owners. Before making any decision it is recommended to have a chat with an experienced conveyancer who can help you buy in confidence and stay protected. To book a free call with our experts, get in touch today.

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This article is general information, not legal advice. For advice on your own matter, make an enquiry — it's free and confidential.

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