Joint ownership of a property can be through choice of purchase, inheritance or becoming a trustee of a property with another person. You will need to inform HM Land Registry that property is under joint ownership when you register the property.
There are two types of joint ownership which are joint tenants and tenants in common. You have different rights to what you can do with the property if there is a break down of relationship or death of the other owner of the property.
As joint tenants, you will have equal rights to the property in its entirety. You cannot pass the property onto anyone in your will, and should you die the property will go to the other person.
As tenants in common, you will be entitled to a share of the property by which you do have the option to pass said shares onto someone in your will and the property shares will not automatically go to the other person in the joint ownership.
Under certain circumstances such as change of marital status, you can choose to change the type of ownership at no fee.
To change the status of your joint ownership, you should speak with your solicitor who will assist you in completing the relevant forms to either form the joint ownership or disband it, otherwise known as ‘severance of joint tenancy’.
It is important to figure out whether what type of joint ownership you want. It can cause issues down the line when it comes to sell your property, if for example you and your spouse were to separate or divorce, and it brings more legalities into play which can not only elongate what may already be an uncomfortable process, but can cost you more in solicitor fees.
If you are interested in setting up a joint ownership on your property, we would recommend that you discuss the options in further detail with a property professional or a solicitor. Feel free to contact us today to discuss joint ownership of property in further detail.