Often it is necessary in order to obtain a mortgage to join in a son or daughter and to have his or her wages taken into account. Not only will they be included in the Mortgage Deed but also the Purchase Deed. If this is a requirement of the Lender, then you must accept it.

Alternatively, if you merely wish to include your son or daughter in the purchase in order that they can have interest in the property in the event of death, you must consider the position a little further. If either of your children marries, or indeed moves out to find an alternative house, then problems could arise if they acquire another property or mortgage. There is also the question of Capital Gains on their interest in your house. Accordingly you may wish to leave the purchase merely in the names of husband and wife, making sure that after purchase you make a Will.

There are two kinds of joint ownership – JOINT TENANCY and TENANCY IN COMMON. These are legal terms and do not mean that a tenancy in the usual sense is being created. It applies if there are two or more purchasers (the law does not allow more than four). You can hold the property in either of these two ways:

JOINT TENATS – In the event of death of either purchaser, his or her share will automatically pass to the survivor.

TENANCY IN COMMON – Each owns a share in the property, for example, one half each or one third and two thirds. On death, the deceased’s share will pass by Will or if no Will, then under the laws of intestacy.

EXAMPLES WHERE PURCHASERS BUY AS TENANTS IN COMON:

COMMON LAW WIFE – often it is necessary to ensure her share in the property will pass to her children perhaps of a previous marriage.

PURCHASE IN CONTEMPLATION OF MARRIAGE – if this applies, you should consider the purchase as tenants in common until the marriage is solemnised and as from the date you become husband and wife the property will then be held as joint tenants. A clause in your purchase deed may well read as follows:

“The purchasers jointly and severally hereby declare that they shall hold the property from date hereof until the Purchasers shall marry as tenants in common in equal shares and upon solemnisation of the marriage they shall thereafter hold the property as joint tenants both legally and beneficially.”

PLEASE ADVISE YOUR REQUIREMENTS IN WRITING.

OUR CAMPAIGN FOR CONVEYANCING REFORMS TO BENEFIT HOUSE OWNERS

For many years we have campaigned for the purpose of the conveyancing system. Our main purpose was to further your interests as buyers or sellers of property by obtaining important benefits for all house owners. To date we have achieved a great deal and saved the public millions of pounds in legal fees and expenses.

We believe that the conveyancing system above all needs experienced specialists to carry out work for the public under a far more efficient system than the present one, which will provide greater protection for property owners, and give them freedom of choice when selecting conveyancing services.