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Joint tenants or tenants in common?
Han1994
Posts: 1 Newbie
Me and my partner are currently in the process of purchasing our first house. We have 2 children, one of which is from my previous relationship and have been together for 7 years. We have been asked if we want to own the property as joint tenants or tenants in common. Our deposit is being gifted by his mum which is HIS Inheritance and he will be contributing slightly more towards our mortgage monthly for the next few years. He has said he is happy to own the property as joint tenants but I’m unsure whether tenants in common would be a better choice with me owning less of the property but being able to then leave my share to my son from a previous relationship as well as the daughter we have together. If we went ahead with joint tenants are we unable to leave anything in our will to our children? Feeling rather confused, any advice would be appreciated.
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Comments
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There's two main "What happens..." deciders...
1. Death
2. End of relationship
It does sound as if TiC would be better for you.
With JT, if you predecease your partner, then your part-ownership simply ceases to be the moment you draw your last breath. There is nothing to leave anybody. Your partner would simply be 100% owner.
One question, though - what happens if your son and partner fall out? They will jointly own your partner's home. What happens if your son hits financial trouble? Or if he then wants to buy his first home? Part-ownership of a property can be problematic.0 -
If you go for tenants in common then have a deed of trust drawn up and do just agree a simple split 60/40, 30/70 or whatever, you need a two part formula.
For example, say your partner is paying the 30% deposit and will be paying 60% of the mortgage with you paying 40%. Your deed of trust might be worded something like this:
[FONT=Verdana, sans-serif]On the sale of the property and after paying the sale costs and redeeming the mortgage the proceeds of sale shall be split as follows:[/FONT]
[FONT=Verdana, sans-serif]Party A – 30% of the gross sale price less costs of sale[/FONT]
[FONT=Verdana, sans-serif]The remainder – Split 60%/40% between Party A and B[/FONT]
Whatever formula you go for it needs to work if you sold the house tomorrow, in 5yrs or in 30yrs.0
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