I'm buying a property with someone else- we've been told we can hold the property as 'tenants in common' or as 'joint tenants'- what do these terms mean?
This is to do with what happens when one owner of a property dies (as opposed to having anything to do with renting!)
When buying a property in joint names you can choose whether your names appear on the title deeds as 'Tenants in Common' or as 'Joint Tenants'. Which type of ownership you opt for affects what will happen in the event of one owner dying.
- Tenants in common: If one owner dies the property doesn't automatically go to the other owner- if there is a will this will be examined to see what should happen to their share of the property. If one owner is putting more into the cost of the property than their partner then 'Tenants in Common' can own the property in unequal shares (i.e 60% to one owner, 40% to the other)
- Joint Tenants: If one owner dies then the surviving owner automatically gets the whole of the property as both have equal rights to the whole property. The Will does not determine actions on ownership.
20th July 2016
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