Moving house? Before you purchase your perfect home sweet home, there are a number of important decisions to make. Here’s what you need to know before you sign on the dotted line…
Ownership of your home
One of the things people often forget when they’re buying a home, is how you’ll own the legal title to the property. When two or more people purchase a property, there are two main ways in which they can own the property, either as joint tenants or as tenants in common. The choice is hugely important during your ownership of the property and has a number of potential consequences. So before deciding, you should consider which is the most appropriate route for you.
Protecting your property
If you hold the property as joint tenants, you’ll have an equal interest in the property. Tenants in common, on the other hand, can choose to put a declaration of trust in place to set out the different interests in a property. This might include protecting initial deposit monies or intended differing mortgage contributions. This declaration of trust will determine how the proceeds of the sale are split in the event the property is sold. It can also be used to identify the parties share in the event that one of the owners loses capacity or passes away.
Making a Will
A trust deed will mark out the proportions that each person owns, however, it doesn’t indicate where each person’s share of the property will go if either owner was to pass away. It’s essential to think about what would happen if one of the legal owners dies, so important to make a Will to cover such an occurrence. Putting a Will in place makes sure your wishes will be carried out in this event.
If you’d like further information about Wills or Trust Deeds, please me or one of our Private Client team on 01604 828282 who will be happy to help.