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What is joint ownership of property?
These days the legalities of owning a property can be complicated.
Recently the number of couples who are unmarried and purchasing property together has increased.
Also the number of people who have gone through a divorce or some other type of separation and wish to purchase a property with another person has also increased.
In those instances we must consider protecting the inheritance of children from the first marriage.
In all circumstances consideration must be given, when purchasing a property, as to how that property is to be owned.
In this video Sarah McCann from LCF Law talks to us about the various ways that we can own property while protecting our investment.
It is appropriate to hold the property as tenants in common or in common ownership. This is when each party has their own defined share in that property. This may be determined through the proportions of how they’ve paid towards the deposit or the full purchase price of the property.
Therefore in the event of the sale of the property the proceeds of the sale after the payment of the costs of the sale and the re-payment to any charge or mortgage on the property, will be divided in accordance to the agreed shares.
In the event one party dying before the sale of the property their interest in the property shall pass to who they’ve indicated in their will and shall not automatically pass to the surviving owner.
An alternative to owning the property in common ownership is to own the property as joint tenants.
Joint tenants is usually held in equal shares therefore in these circumstances if one party was to die their interest in the property shall pass automatically to the surviving owner and shall not pass through any will of the deceased survivors.
It is important to consider how property is to be held when making the decision to purchase the property and it doesn’t have to be that complicated.
Call us now on 01274 848800 and speak to one of our many property experts to discuss all the options that are available.