Newmarket and Ely Living Dec 2019 - Jan 2020

ADVERTISING FEATURE
Owning a Property Jointly
– What do I need to Know?
By Carla Tirrell, Associate Licenced
Conveyancer at Fraser Dawbarns LLP
Solicitors...
With the cost of property rising at a
faster rate than incomes, many people
are choosing to buy a house together
in order to help them on to the property
ladder. When two or more people co-own
property they can either be joint tenants
or tenants in common. These terms are
a little old-fashioned because they come
from an act that was passed nearly 100
years ago.
Although a lot has changed since The
Law of Property Act 1925, the concept
of establishing different ways of owning
a home is still very useful today, perhaps
even more so than it was then. So what
are the differences?
Joint Tenancy
If nobody requests the alternative, a
joint tenancy is the legal default position.
Under a joint tenancy, the property can’t
be divided up and all owners have equal
rights to the property. If one party wants
out, the other owners have no choice to
agree and must either sell the property
or buy the co-owner out. If one owner
dies, the other owners will retain equal
ownership of the entire property. If there
were two joint tenants, the other will
become the sole owner. A married or
cohabiting couple are likely to be joint
tenants of a property.
Tenancy in Common
Here each owner has a separate share
of the property and can do with it as
they wish. By default, ownership is split
equally but if the parties have agreed a
different ratio, that will apply. As with a
joint tenancy, if one party wants out, the
others must allow them to sell their share
or buy them out themselves. If one owner
dies, their share is distributed as set out
in their Will (or according to intestacy
rules if they have not made a Will).
Friends or business partners buying a
property as an investment will very likely
be tenants in common.
Changing Types of Ownership
It is possible to change from joint tenants
to tenants in common or vice versa by
applying to the Land Registry. It is also
“Although a lot has changed since The Law of
Property Act 1925, the concept of establishing
different ways of owning a home is still very
useful today...”
36 | www.newmarketliving.co.uk
possible to change from sole ownership
to either joint tenancy or tenancy in
common, this is called transferring
ownership.
How Many People Can Own a
Property?
No more than four people can be legal
owners of a property. However through
use of a Trust, it is possible to have any
number of owners. In this circumstance,
the legal owners hold the property as
trustees on behalf of the additional
owners who are beneficiaries of the Trust.
In this circumstance it is possible for
both trustees and beneficiaries to be true
owners of the property. A Trust would
be necessary in the case of inheritance,
where more than 4 people stand to inherit
a share of the property.
If you would like any more information on
joint ownership of a property or on any
other legal matter, please contact us at
info@fraserdawbarns.com or telephone
any of our offices:
Ely 01353 383483
March 01354 602880
Downham Market 01366 383171
Wisbech 01945 461456
King’s Lynn 01553 666600