What happens if I die?

Mojisola

girl_withno_name wrote: »

I had limited knowledge and advice such as included here suggested this was the most usual / appropriate route for unmarried couples

It often is suggested as a way of protecting the financial interests of each party as unmarried couples are still seen as not having the same commitment to each other as unmarried ones. It's a moot point as there's a lot of unmarried couples who have been together longer than many marriages last, but that's still the perception.

You have to judge what you would want to happen to your OH if you died suddenly (so didn't have time to amend any legal paperwork). Would you want half of his home to be owned by someone else? Would you want him to have to sell the home you had made together in order to release the money to your estate? How would you feel if he died first and left you in that situation?

You could go as tenants in common for the moment and write wills leaving your share to each other, if that's what you would want to happen.

It's always worth reassessing your wills and other financial stuff every four/five years and after any major life changes such as babies arriving on the scene. What suits you now may not be right in five or ten years' time.

getmore4less

Remember the mortgage will be joint you can't do one as tenants in common.

This can leave you in a situation where the debt is all yours but you only own 1/2 the house if it forms part of the estate which it will as tenants in common.

Mojisola

The Land Registry can't give you advice about which type of ownership is right for you but they are usually very helpful if you want to change the ownership and it's quite simple -

https://www.landregistry.gov.uk/public/guides/public-guide-18

kingstreet

If this is an attempt to apportion ownership to protect an uneven deposit situation, a deed of trust is the best option. As already stated by many, the only impact of tenancy in common versus joint tenancy is on death.

As gm4l has asked, do you want to risk ending up owning half the property, but liable for all the mortgage? Law of unintended consequences and all that? Wills can be changed quite easily.

girl_withno_name

This isn't an attempt to apportion ownership based on deposit (deposit is 50:50, as are the ownership percentages)... I guess I was somewhat blindly following general advice base on our relationship status.

OH and I should probably discuss over the weekend, dunno if it would be too late to change to joint tenancy before purchasing (if we decide that to be the better option for us).

Edit: can anyone tell me if there are any differences / benefits / complications in joint tenancy and tenants in common, if we were to split up? (Touch wood not, but better to cover all bases I suppose!)

Mojisola

girl_withno_name wrote: »

This isn't an attempt to apportion ownership based on deposit (deposit is 50:50, as are the ownership percentages)... I guess I was somewhat blindly following general advice base on our relationship status.

OH and I should probably discuss over the weekend, dunno if it would be too late to change to joint tenancy before purchasing (if we decide that to be the better option for us).

Edit: can anyone tell me if there are any differences / benefits / complications in joint tenancy and tenants in common, if we were to split up? (Touch wood not, but better to cover all bases I suppose!)

As everything is 50/50, I can't see any differences as long as you cover yourselves with wills.

One scenario - you stay as T-in-C and have a will saying the love of your life is to inherit your half of the family home and then he behaves really badly, you separate but die before you can change your will - he inherits your share of the house.

Another - you change to JTs, he behaves really badly, you separate but die suddenly, he now owns all the house.

That's why T-in-C is recommended but it's best if it's matched with a will that expresses your wishes and is changed quickly if the relationship breaks down.

pinkteapot

I can't think of any difference between JT and TIC if you split up, if the deposit and ownership is all 50:50.

If you split up, either one of you has to buy the other half out of their half in order to stay there, or the house is sold the proceeds split 50:50 (after the mortgage is paid off).

Being JT or TIC makes no difference at all to this.

I've mainly heard of TIC being when deposit/contribution is uneven and the person putting more in wants to protect their share in the event they split up. The agreement states what % each tenant owns.

If you own as JT from the outset, it'll save the hassle/cost of changing to JT in the future. I think you can change from TIC to JT yourself (without using a solicitor) so cost should be minimal though.

getmore4less

kingstreet wrote: »

As gm4l has asked, do you want to risk ending up owning half the property, but liable for all the mortgage? Law of unintended consequences and all that? Wills can be changed quite easily.

Forgot to add that after death where you only own 1/2 the house and all the debt the implication is not totaly bad.

The mortgage charge means that they still get first dibs on sale so you don't end up owing more than you own unless you are in negative equity where you are liable for all of it.

The other negative issue is that while paying the mortgage and equity is being built up you are effectifly paying for the other owners equity.

It can get messy, especialy if the others don't make you sell but want to charge you rent.

Another typical senario often used with older people(especialy second relations ships) is to will the property to someone(usualy 1st marrage kids) in trust but give the new partner/spouse life interest.

Mojisola

For the sake of both of you, have an insurance that pays off the mortgage if one of you dies.

Phil_rich

Just buy it as you are Tennents in common and get a life insurance policy each (not linked to the mortgage) of say mortgage + 25% then you are both covered.

Also remember to have a will in place. If your not married then the insurance payout might end up with a different family member.