Owning property jointly ...
An important point to consider when buying
property with someone else is the relationship between your two shares, and what
happens if one of you dies. There are two choices :
If you own
the property as Joint Tenants
If one of you dies the
property will automatically pass to the survivor who will then be the sole legal
owner of the property. This happens irrespective of what you say in your Will.
When selling a property held under a joint tenancy the sale proceeds are split
equally between the legal owners.
A joint tenancy can be
'severed' at any time by either owner serving a notice on the other. The
property would then be held as tenants in common in equal shares or as otherwise
agreed between you.
If you own
the property as Tenants in Common
You each own a share in
the property and the shares need not be equal, depending upon the proportion of
the purchase money provided by each of you.
Each of you should make a
Will providing for what is to happen to your share on your death. If one of you
dies, the property is held jointly between the survivor and the person to whom
you have left your share.
This kind of ownership can
be converted into a joint tenancy if necessary with legal advice.
