Joint tenants or Tenants in Common

Clarita

Hi,

Me and my long term boyfriend are buying a leasehold flat and have been asked by the solicitor which way we want to buy: Joint tenants or Tenants in Common. My parents will be contributing a large deposit amount to help us but this is going to be drawn up as a formal loan by the solicitor. The aggreement is when the flat is sold we'l pay back the loan ammount plus what interest would have been gained had it been in a savings account.

Anyway, although we've been together about 5 years you never know what might happen in the future and as we're not married I'm inclined to go with Tenants in Common. I also think that if something were to happen to one of us the other would be saddled with the full mortgage costs, etc on their own instead of the other set of parents (being the next of kin) being obliged to contribute half.

What do you think? Is there anything glaringly obvious I've not considered and do you think it's a sensible choice?

Thanks

LillyJ

I am going tenants in common (been with partner 7 years so similar sort of situation, and getting loan off parents) but I had discussed on another thread, the fact that you can get life insurance that will give the survivor enough money to buy the next of kin out.

Well that is what we decided anyway. Someone who is more knowledgable legally will help you. (ps be prepared for some stick, I got told on the other thread that I was "very strange" for being tenants in common with a partner and that perhaps we shouldn't be buying at all)! All I want is to protect my and my parents finances, even 30 year marriages end so you have to prepare for the worst!

Clarita

Yeah I agree. As romantic as it is to not give a moments thought to what "could happen" I think it'd be pretty stupid to automaticly assume everything will stay the same forever! That's why people take out insurance for everthing!

Thanks LillyJ

LillyJ

Yep exactly. It's not like we sit their splitting up tesco value loaves of bread 50-50 or anything, it just seems sensible to do so when there are hundreds of thousands of pounds at stake!

It is hardly a gesture of love to go joint tenants anyway!

subjecttocontract

Its equally important to get your pre-nuptual agreement drawn up professionally.

Clarita

Maybe it would be if we were getting married

trudiha

My partner and I are planning to get married in June, well I say planning but we haven't don't any actual planning yet so it might not happen until November by that's by the by. We are in the process of buying a place and decided to go for the 'in common' rather than 'joint', although both of us list the other as the main beneficiary in our wills. That means that if (when) either of us die the other get the dead one's part of the house.

However, if we both die together (at the very same second) I'd be deemed to have died first because I'm a little older than her, that would mean that the dead her would get all of the house and then it would go to her family. Now I like her family well enough but I don't feel I know them well enough to give 'em half a house. So I've willed it to my ex.

Additionally, if one of us were to go into a care home and needed to pay fees, the 'in common' thingy ring fences the other half's estate to pass on to whoever they want.