There are two ways that joint owners can hold property, either as joint tenants or as tenants in common. Which option suits you best will depend on your personal circumstances.
If you own your property as joint tenants, you have an undivided interest and you are equally entitled to the whole of the property. This means that on the first death, the surviving owner(s) automatically inherit the property.
If however you own your property as tenants in common, you have a divided interest in the property which means that you can either own the property in equal or unequal shares and your co-owner(s) will not inherit the property automatically on your death. Instead, your share of the property will pass to your beneficiaries in accordance with your Will if you have one or the intestacy rules, if you do not.
People will often hold their property in this way to protect their share if for example, an owner has made a greater financial contribution to the purchase of the property or perhaps because they have children from a different relationship that they want to leave their share of the property to.
It is therefore important to make sure that you have an up to date and valid Will in place to deal with your property on your death.
If your circumstances change or you realise that don't own your property as you would want to, you can change how you're holding your property, either by way of a Severance or a Declaration of Trust.
If you would like to discuss any of the above further please contact Jasmin Howlett on 01394 277 941 or jasmin@fairstep.co.uk, alternatively, fill out our contact form, and we would be happy to discuss your requirements in further detail.