Co-Ownership
When any property is owned by more than one person, they can own it either as “joint tenants” or as “tenants in common”.
1. JOINT TENANTS
1. This is the method of ownership commonly used by married couples who do not wish to distinguish what each of them owns or to demarcate their shares in the property.
2. When one of two joint owners dies, the whole property automatically passes to the surviving joint owner by operation of property law. Neither of the two joint owners has an interest in the property that is capable of passing under their Will. In the case of a married couple who want everything to go to the survivor on the first death, this is perfectly in order. However, if they want to provide for any other arrangement in their Wills, a joint tenancy may be inappropriate.
2. TENANTS IN COMMON
1. Where co-owners hold property as tenants in common they own the property in specified shares so this method of ownership is appropriate where the co-owners wish to define their shares whether those shares are equal or unequal.
2. Owning in specified shares is also important if the owners do not wish to leave their respective shares in the property to the other absolutely. For example, they may want to leave their share on trust for the other or they may want to leave it to somebody completely different.
3. If you wish to own a property as tenants in common, we can prepare a separate Deed setting out those shares. If you wish, the Deed can also set out obligations to contribute towards outgoings and what is to happen if one of you wishes to leave the property. This type of Deed is called a Declaration of Trust and the charge will be £95.00 if it is done at the time of buying.
4. You should bear in mind that although a Declaration of Trust is normally binding on the parties entering into it, there are occasions when the courts have power to disregard such documents and to order that property should be divided in a different way. In particular, in making financial orders upon break down of marriage the courts have a wide discretion to re-distribute assets between two spouses.