Buying a home for the first time can be daunting. This can be made more stressful if the parties buying the property have put a disproportionate amount of funds into the purchase or are purchasing it as an investment. How the proceeds of sale of the property are to be divided is the last thing that buyers normally think about, most couples will usually purchase their property together as joint tenants but putting an agreement in place at the outset can avoid problems later.
If the property is owned as Joint Tenants then the whole property, and the subsequent proceeds of sale if the property is sold will belong to both owners. They do not have separate shares which they can sell or leave in a Will. If one person dies then the right of survivorship applies. The survivor then becomes the sole owner of the whole property. For each person to own a specific share of the property the joint tenancy would need to be severed.
A Joint Tenancy can be turned into a Tenancy in Common by severing the Joint Tenancy on the property concerned. This entails serving a written notice of severance to the other joint tenants or in other ways which would suggest that severance has taken place for the property to become held as Tenants in Common.
Tenants in Common is where each owner owns a specific share of the property. These shares can be in unequal portions, and can be freely transferred to other owners both during life and via a will.
If you have any questions or need any further advice, please do not hesitate to contact us and we will do our best to accommodate you.
Our trained consultants can discuss your current circumstances and recommend the products that will provide the correct protection for you, your family and your assets. For peace of mind contact the Will Associates today and get your free information pack today or call us on 01630 436004 to arrange a free appointment with one of our trained consultants, at a time convenient to you and your family in the comfort of your own home.