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Joint Ownership
'Joint Tenants' and 'Tenants-in-Common'
If you are buying a house jointly with someone else then you have to decide whether you will own the property as 'joint tenants' or 'tenants-in-common'.
If you are 'joint tenants' then each of you jointly own the entire property. This means that when one of you dies, their interest in the property passes automatically to the survivor. It is therefore usual for married couples to buy a property as joint tenants, but there could reasons why your solicitor may advise against this.
If you decide to own the property as 'tenants-in-common', then each owner has their own separate share in the property. If there are two owners this will usually be half each, however you can decide between yourselves what proportion of the property belongs to each owner. So if one of you contributed more to the purchase price than the other, this could be reflected in the respective shares of the property, say 70% and 30%. The point is that each of the tenants-in-common always owns their share of the property and is only entitled to that proportion of the sale proceeds if the property is sold during their lifetime. If they die then their share of the property forms part of their estate and does not automatically pass to the other owner.
This is an important point which you need to discuss with your solicitor, who will give you professional advice based on your personal circumstances.
Acknowledgement: www.lawontheweb.co.uk
These notes are offered as a general guide only and do not constitute legal or financial advice.
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