Every fourth owner of a property in the UK does not represent legal structure of their ownership

Of the approximately 17 million people in the UK who are co-owners of real estate, one in four has no idea of the legal structure of their ownership.

At the time of vesting of an equity owner of the buyer of property in the UK can choose between two options: ‘joint tenants’ or ‘tenants in common’ . Depending on the type of ownership, the buyer would have different rights if the relationship will be severed, or if one of the owners dies.

The most common type of ownership – joint tenants. This is the type of ownership in which each owner has equal rights and each owns 100% of the property. In the event of death of one of the owners, his share automatically passes to the other owner. Approximately 63% of homeowners own property that is on the basis of the joint tenants.

Only 12% of homeowners are owners on the basis of tenants in common. It is a form of ownership in which each homeowner has a share in the common property. The ratio of shares can be anything. For example, 50:50 or 70:30. This kind of property is convenient also in that case, if there is a rupture of relations. In the case of tenants in common the share of each is already determined in advance and the break occurs more easily, even in case of significant changes in the value of the house.

Another important fact that affects the type of ownership is the cost of the expenses incurred by the owner for the maintenance of their homes. Local authorities by law have the right to cover the cost of maintenance of the money obtained from the sale of the property. In the case of share (tenants in common) ownership, this kind of expenses easily split between the owners according to the known proportions of the shares.

Difficulties with the ownership of joint tenants can arise from the transfer of its share to a third party.

Thus, there is a number of advantages, which gives owners the right of ownership of tenants in common .

Lawyers advise owners to change the form of its ownership with uncomfortable joint tenants to a more convenient tenants in common , in order not to encounter problems when a situation arises with the definition of the share of the property. This can be done independently, using the forms posted on the website of the Land registry, or recourse to lawyers.

® Helen Entree. 08.09.2016 G.

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