Then you need to give thought to how you wish to hold the property.
Your conveyancer will ask you whether you wish to hold the property as Joint Tenants or Tenants in Common. What’s the difference?
A joint tenancy is where all owners hold the property equally and have an equal interest in the property. All joint tenants are entitled to an equal share of the profit on the property and conversely, are responsible for an equal share of the costs associated with owning and maintaining the property. Many couples prefer this option due to the fact that when one joint tenant dies, that tenant’s share is equally distributed to the surviving joint tenants without incurring any transfer duty. The deceased owner’s share of the property will not form part of their deceased estate.
Tenants in Common can own the property is unequal shares. For example, one owner can hold ¾ of the property and the other ¼. Unlike a joint tenant, a tenant in common has control over to whom their share of the property can be transferred to. If this happens after death, the share of the deceased owner’s property is dealt with by the terms of the Will, rather than automatically being transferred to the surviving owners. This option could work for couples in second marriages, who wish to bequest their share in property to their children.
How you choose to record your ownership of your property, can have implications for you down the road of life. Therefore, it is important to think about the manner in which you wish to hold property, and take advice from the friendly team at McNamara Law to ensure you understand your options.
