Tenancy in Common
When a tenancy in common is made it means all tenants/owners must have equal rights to possess the whole property. However, each of the tenants owns a specified proportion of it. For example, it might be that the tenancy in common is divided equally or that one party owns a 60% interest and the other party 40% interest.
When a tenant who has a tenancy in common dies the deceased proportionate interest in the property will not pass automatically to the survivor. Instead the deceased will determines who takes the interest. If a Will has not been written then the interest will be distributed in accordance with the laws of intestacy.
If the two parties wish to contribute different amounts in order to purchase a property it may be necessary for a solicitor to draft a trust deed. This document will set our your respective shares in the property and can be used in the event of a dispute or death or a party.
When a joint tenancy is agreed, all parties to the Joint Tenancy owns the property as a whole. This means that if one party dies the property automatically passes to the other joint tenant or tenants.