Joint Property Ownership Explained
In order to best protect each parties’ legal and beneficial interest in the property it is advisable to hold your interests as ‘Tenants in Common’ either in equal or unequal shares (depending upon the sums contributed by each party). It is also advisable to draw up a ‘Trust Deed’, which would specifically set out how your respective interests in the property are to be held; how said interests would subsequently be dealt with upon any relationship breakdown, re-sale or death of any party.
The Trust Deed would set out the details of the arrangements, including;
- The amount each purchaser contributed to the purchase price
- The respective share owned
- The contributions to outgoing costs (insurance, decoration etc)
- Contributions to mortgage payments and what would happen if one party refuses to pay
- Agreement on how to value the property on sale
- Rights of refusal on a resale (i.e. one party does not wish to sell or moves out remaining on the title)
- How the property or sale proceeds are to be distributed between the parties
Associate and Residential Conveyancing Lawyer
Our Conveyancing team are experienced in joint property ownership and can advise you accordingly. For further information and a personalised quotation please contact a member of our team who will be happy to help you.