Joint Property Ownership

How can we help you?

Before deciding to buy a property with someone else, you need discuss the following questions:

• How will ownership shares be divided? While a 50/50 split is common, it depends on your circumstances.
• Will you need a mortgage, and who will be responsible for paying it?
• Are any repairs or improvements needed, and how will they be funded and organised?
• What happens if one of you wants to sell the property in the future?

In some cases, we would recommend that a Declaration of Trust be drawn up. This is a legally binding document which clarifies ownership arrangements, helping to prevent disputes and misunderstandings.

If you wish to record a percentage split between more than one owner, then we can record this on the Transfer document and there would be no additional charge.  However, if you are looking for something more complicated such as to protect a specific amount and make provision for what happens to any amounts over that sum or in the event of any loss being made on the property, then a formal Deed would need to be drawn up which is far more complicated and would incur an additional fee.

Please be aware that if you do get married, as marriage is a legal contract it would override any prior Deeds made between the two of you. As such, it would immediately and automatically invalidate the Deed and any assets would be divided following the usual divorce process unless you were to make a further Deed after your marriage.

Additionally, we would recommend that you create or update your Will to outline what happens to the property in case of death, avoiding complications later on. If you do not have a Will, then you would die intestate and the rules of intestacy would apply which could mean your shares going to a family member such as parents etc or an ex-spouse if one of you remains married from a previous relationship.

Joint Tenants

You can buy a property together as joint tenants.  In the event of death, the property passes to the surviving joint tenant automatically.  In other words, it does not pass in accordance with the Will of the deceased co-owner. As joint tenants you will own the entire property collectively, and so if you need a mortgage, you would have to apply for this jointly.

Tenants in Common

You can also own a property as “Tenants in Common”, which means that each of you own a defined share of the property. You can specify in several different ways as to what share each person owns.  In the event that this is not specified in writing anywhere, there is a presumption that the shares are equal. Tenants in Common can pass on their share of the property in their Will (so it won’t automatically pass to the other tenant).

If you proceed as Tenants in Common, there will automatically be entered on the Register a “Sole Proprietor Restriction” which means that the Land Registry will put a note to say that one of you acting alone cannot sell the property. This is put in place to protect the deceased’s share and to ensure that it passes in accordance with their Will.

Changing Ownership

If your circumstances change, ownership types can be altered. For instance, if you and your partner separate, ownership can be changed by completing relevant documents and registering changes with the Land Registry. Transferring ownership is possible for all ownership types, including joint tenants, tenants in common, and sole ownership.  You can also change between the two different ways of owning, i.e. you can sever a Joint Tenancy at any time.

How to Transfer Ownership into Joint Names

If you want to divide property ownership, you may be able to gift the property or transfer equity. Gifting involves adding another person’s name to the deed, while transferring equity means you’ll need to consult with a solicitor and may mean you’ll have to pay stamp duty.

Whatever arrangements you make at the time of your purchase, this merely records your percentage ownership of the equity as at the time of completion.  In the event that you were to split up, it would be up to the owners to reach an agreement as to who would get what after the sale of the property. However, this would act as strong evidence as to your intentions in the event of a dispute.  If you could not decide, then the matter may ultimately end up in front of a Court.  They would look at this evidence along with any factors that had changed between now and then, such as lump sum payments made by one of you, whether you have children, get married etc.

Our expert residential property team can help guide you through all the steps of joint ownership. Contact us today.

Our Residential Property Fees

We will provide you with a detailed quote, based on your individual circumstances. We will always agree costs with you before we start work on your behalf. Our aim is to provide first-class advice at a cost-effective price.