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Are you considering investing in a property with someone else it could be a friend, a family member or someone you might meet through a co-buying network or joint ownership introduction service.
Joint ownership is on the increase as many people see it as their only way onto the property ladder. It brings the first rung within reach, because it lowers the amount of deposit required by each investor and ongoing monthly costs. Because many people are used to sharing accommodation as students, trainees or renters for example, the idea of living in jointly owned property is the logical next step.
Whoever you are thinking of investing with, you should put measures in place to protect your investment.
We would strongly recommend if you proceed with joint ownership then draw up a trust deed or declaration of trust and a co-habitation agreement between all the parties. This may seem daunting at first but your solicitor will help you turn your agreements into working legal documents. Similarly, a mortgage adviser will help you understand how a joint mortgage works and the advantages, or disadvantages, of different types of mortgages.
Joint tenancy
Under this agreement the joint owners together own the whole property and do not have a particular share in it. If one of the owners dies the other automatically becomes the sole owner. This would be the case even if a will had been made leaving the deceased owner's a EUROS share' to someone other than the co-owner.
Tenancy in common
This is the opposite of joint tenancy in that the tenants in common each have a definite share in the property. For example A and B could own the property in equal shares, or A could own one fifth with B owning four fifths. This would be the most appropriate agreement where people want to own a property in separate pre-determined shares.
Under this form of ownership if one of the owners dies, his share of the property will pass on to whoever he specifies in a will, or if a will is not made, in accordance with the rules of intestacy (someone dying without leaving a will). If you are planning to make a will (and it would be wise to do so) you should have it drawn up before you sign the transfer deed that passes the legal ownership of the property to you. This way you will save the time, money and inconvenience of having to change your will.
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