Buying a home with a partner, friend or family member can make the dream of owning a property much more achievable. Sharing the costs can open doors that might otherwise stay closed. But one question is often overlooked in the excitement of finding the right place: how will you actually own it together?
If you’re buying with someone else in Cardiff or anywhere in South Wales, your conveyancing solicitor will ask you to choose between being “joint tenants” or “tenants in common”. It sounds technical, but the choice can make a big difference later on. Here’s what each one means.
What Are Joint Tenants?
As joint tenants, you and your co-owner own the whole property together, rather than owning separate slices of it. So you’re treated as one legal entity.
The key feature is called the right of survivorship. If one of you dies, the property automatically passes to the other, whatever your will says. That can be reassuring for a married couple who want the survivor to keep the family home without any delay.
It also means you can’t leave your share of the property to anyone else in your will.
What Are Tenants in Common?
As tenants in common, each of you owns a defined share of the property. That might be 50/50, but it doesn’t have to be. You could own 70% and 30%, or any other split that reflects what each of you contributed.
Each person can leave their share to whoever they choose in their will. There is no right of survivorship. If you die without a will, your share is dealt with under the intestacy rules rather than automatically passing to your co-owner. And those rules do not protect unmarried partners, which catches many people out.
What if things change?
Life rarely stays still. The good news is that your choice isn’t necessarily permanent.
Joint tenants can usually convert to tenants in common by serving a written notice, known as “severance”. It’s often done after a separation, so a person’s share is no longer automatically passed to an ex-partner on death. You can also change from tenants in common to joint tenants if everyone agrees.
It’s best to take advice before making any change, particularly if there is a mortgage involved or you’re going through a divorce or separation.
Why it’s worth getting right early
Many people leave ownership as a quick tick-box at the end of the process, and later discover it doesn’t match their wishes. Disputes over inheritance, or over who gets what when a friendship or relationship ends, can be painful and costly, and are often avoided with a few minutes of thought at the start.
It’s also worth reviewing your will at the same time. Your will and the way you own your home need to work together.
How Dudden Law can help
Our conveyancing team in Cardiff helps buyers across South Wales every day, whether you’re a first-time buyer, a couple moving in together or friends and family pooling resources. We’ll explain the options in plain English, recommend what suits your situation, and prepare a declaration of trust if you need one.
Because our Wills & Probate and Family teams work alongside conveyancing, we can also make sure your will and your plans for the property line up.