Mortgages and Separation of Unmarried Couples
With property prices increasing, more and more people are buying a property jointly with someone else other than a spouse; whether a partner, business partner, relative or a friend. Consideration should always be given at the outset to what would happen if the partnership were to end for any reason.
Essentially there are two options for buying property in joint names. Generally, a married couple would own a property as joint tenants where both partners jointly own the property as a whole. This option is also probably most suitable for an unmarried or same sex couple. In the event of death of one party, the property would automatically pass to the other person and if the couple were to separate, either owner may insist on the sale of the property unless the other party can raise funds to buy the other's share.
The other option for joint property ownership (increasingly common among friends or relatives) is to hold the property as tenants-in-common. Each owner has a separate share in the property. There can be more than two owners and the shares do not have to be equal but can reflect the level of contribution to the purchase made by each person. If one of the purchasers were to die, their share of the property would not automatically pass to the surviving owners but their share of the property would form part of their estate. Again however, in the event of separation, one owner is entitled to insist on the sale of the property if they wish to realise their share of it unless buyout is an option.
Our specialist mortgage advisers are experienced in finding the right mortgage for people in this situation. If you would like us to help you to find the best deal available for you or for help and advice, please click on our Mortgage Enquiry Form below and one of our experts will contact you. Alternatively, you can give us a call on 0845 108 0505.
