Making that step onto the property ladder is always a big decision and buying a house is a very stressful process.
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, but putting an agreement in place at the outset can avoid problems later.
Normally, when a couple buy a property, they purchase as Joint Tenants and this means that they both own the whole of the property, and if one of them dies the property will automatically transfer to the other owner.
There are various reasons why this may not be the best option for the parties concerned and it is often the case that by severing the tenancy into defined portions, arguments are avoided and the proceeds of sale will pass to the right person.
Whether the intention is to protect your share for someone other than your partner or simply to define the portions in anything other than an equal share, it is essential that you sever the tenancy on the property to avoid the automatic transfer to the joint owner. This can be a simple process which we can assist you with.
More often than not the application is done mutually by both parties, however this is not necessary and can be done by one party alone as long as the joint owner is notified. This is useful when divorce proceedings are considered and there is a need to avoid your share of the property transferring automatically to your spouse if you should die before the financial situation is resolved.
By severing the tenancy of the property and completing a Will, giving your interest in the property to someone else, such as your children, you can ensure that your beneficiaries receive what you would like them to without relying on your former spouse to provide for them.
No one likes to think about their spouse re-marrying after they have died but it could happen and in doing so any existing Will they had would become void. The new partner would inherit whatever your spouse owned should they predecease them. Without adequate estate planning your estate could pass to your spouse’s new partner and not your children.
Our trained Consultants can assess your current circumstances and recommend the products that will provide you with the correct protection for you, your family and your assets. Get your free information pack today, or contact us for more information.