If you’re thinking of buying a property with another person, then it’s important to know your legal rights and where you stand regarding the right to ownership.
While 15 to 20 years ago joint property owners were likely to be couples, these days we meet siblings and even friends who want to get onto the ladder by buying a property jointly – which means there is greater need for a wider range of joint ownership options.
So, if you’re looking into purchasing a property with someone else, but you’re not quite sure what your options are, then we help explain in this guide to joint property ownership.
Joint tenants
If you and the person/s you’re buying a property with become joint tenants, you each have equal ownership of the property – it’s not possible to have unequal parts and you are considered as one owner.
The main point of being a joint tenant is that if one of you were to pass away, the other person/s is automatically entitled to that share of the property, distributed evenly between the number of joint owners. If you have a joint tenancy, it’s not possible for your share to be given to another party in the case of your death.
This option is popular with married couples who are happy for their share of the property to be passed to their surviving spouse after their death, and not to any children if applicable.
Tenants in common
Unlike joint tenants, if you are tenants in common then each individual is entitled to their own distinct share of the property, of which each owner is free to do what they want with their share. This allows each owner to have a specific share that doesn’t have to be equal.
If one of the owners were to die, this share of the property doesn’t automatically go the other owner/s. It’s possible for someone to leave their share in a will to another party, such as children.
However, it is not until all parties are deceased that this share can be distributed as wished.
One of the main benefits of becoming tenants in common is that each person’s share is protected from the other party in the case of divorce and remarriage.
Tenancy by the entirety
A tenancy by the entirety is one that is only available to a husband and wife.
It means that if one party were to die, then this share is passed automatically to the other, and when they are living, they are not entitled to dispose of their share as they want.
It helps protect one partner’s share from the other’s creditors. For example, if one of the parties were to get into debt, then the other person’s share of the property is not at risk of being taken from them.
