When people own property as "joint
tenants”,, this means that:
·All parties have equal
ownership and interest in the property
·A right of survivorship exists
(if one tenant dies, the property will pass on to the surviving joint tenant)
Often, joint tenants are married or couples
in long-term relationships.
A joint tenancy will end if the property is
sold to a third party, if one joint
tenant transfers their interest to another joint tenant or, if one tenant
unilaterally severs the joint tenancy ( in the case of relationship breakdown).
A joint tenancy can be severed when one of
the joint tenants transfers all of their interests in the property. The
transfer does not affect the shares of a registered joint tenant, who is not
part of the transfer.
When people own property as "tenants in
common”, it means that two or more people co-own a property in defined shares
that they can dispose of.
The shares can be of equal or unequal value
and a tenant in common can sell their shares in the property or give them away
in a will. This means that there are no rights of survivorship.
Tenants in common arrangements are
typically used for people with adult children, who are entering second
marriages, people who contribute very different amounts towards the purchase of
the property, or investors who are buying property together.
Always speak to your accountant about the
best type of structure for you.
Need a property loan?
Contact us @ propertyloans@realrenta.com
Jason Gwerder
Tuesday, 18 February 2020
