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A Guide to Property Co-Ownership: Unveiling the Options

Embarking on your first property purchase is indeed a thrilling experience.

Whether you’re planning to share this venture with friends, family, or a significant other, understanding the nuances of co-ownership is crucial.

Let’s delve into the distinct methods of joint property ownership available: ‘Joint Tenants’ and ‘Tenants in Common’.

Exploring the Types of Joint Ownership

1.    Joint Tenants: Opting for joint tenancy implies that every owner possesses equal rights to the entire property. The law perceives the owners as a single unit, necessitating a shared mortgage. A notable aspect is the ‘right of survivorship’, where the property automatically transitions to the surviving owners in case of an owner’s demise. However, this setup does not allow bequeathing one’s share via a will.

2.    Tenants in Common: A tenancy in common arrangement facilitates individualised ownership percentages within a property. Ideal for friends or family aiding first-time buyers, this arrangement offers flexibility in dividing property costs. For instance, you might own 70% of the property, while two others possess 15% each. Unlike joint tenancy, tenants in common may bequeath their share as they please. While separate mortgages are possible for tenant in common properties, they hard work to come by, so joint mortgages remain prevalent.

Comparative Insights: Joint Tenancy vs Tenancy in Common

Consent for Property Sale:
Both require unanimous agreement.

Ownership Division:
Joint Tenants: Equal rights to the entire property.
Tenants in Common: Varied ownership shares are possible.

Mortgage Requirements:
Joint Tenants: Compulsory joint mortgage.
Tenants in Common: Preferably joint, although separate mortgages are conceivable.

Inheritance Provisions:
Joint Tenants: Automatic succession by co-owners.
Tenants in Common: Shares can be willed to anyone.

Making the Right Buying Choice
The selection between joint tenancy and tenancy in common hinges on individual preferences and circumstances. Generally, married/civil partnership/long-term couples prefer joint tenancy, whereas tenants in common may appeal to groups desiring ownership autonomy.

Navigating property co-ownership can be intricate. If any local homeowners or buyers find themselves pondering these options or have additional queries, do not hesitate to reach out for expert guidance and personalised solutions.

Tel 01257 273324 or email paul@fobesestates.com