|Losing the plot|
There are two types of co-ownership of a property:
- beneficial joint tenancy
- tenancy in common.
With a joint tenancy if:
- you decide to sell you will receive 50% of the net sale proceeds even if you have contributed more to the purchase price and outgoings
- you pass away your share in the property passes to the survivor who then becomes the sole owner of the property. This is irrespective of whether or not you have made a will.
With a tenancy in common on sale you will receive from the net sale proceeds the % which you have agreed with your co-owner, if one of the co-owners dies:
- their share in the property does not pass automatically to the survivor
- it passes according to the deceased’s will or if there is no will under the intestacy rules.
We will advise you on what is best for you in your circumstances. If it is a tenancy in common, we can prepare the necessary document (usually known as a trust deed or declaration of trust). This will set out the respective interests, rights and obligations of the co-owners in the property including when the property can be sold.