What is Tenants in Common?
There are two ways in which you can own your home; joint tenants or tenants in common.
Though joint tenancy is the more popular option for home ownership, especially among married couples, there are some situations where tenants in common will be beneficial. Especially in shared ownership circumstances where overall finances and assets are not unified.
When owning a property as joint tenants, you and your co-owner will each have 100% ownership. This means that if one person is to die the other joint tenant will inherit the property in full. The person who has passed will not be able to leave their share of the property to someone other than their co-owner.
If for any reason you would want to leave your share of the property to someone other than the person you own it with, you might want to consider Tenants in Common.
Tenants in Common
Owning a property as tenants in common allows for each party to own a specific percentage share of the property. When this is two people the split is typically 50/50, however it can be whatever you wish. This is advantageous for people who will want to leave their share of the property to someone other than their co-owner.
For example, if you have children from a pervious relationship and want them to inherit your portion of the property you might want to consider tenants in common.
There are also benefits when it comes to mitigating care home fees, which you can learn more about in the video above.
Always seek advice
Changing from joint tenants to tenants in common is an easy process but it is recommended to seek professional advice before making that decision. This way your personal circumstances can be reviewed and the advice you receive specific to your situation and needs.
And if you do make any changes to your tenancy, it is important to update your will to reflect the change in your wishes.
For more guidance on tenants in common get in touch with the team at Bigmore Associates by filling out the contact form below.