Having found your new home and made the decision to make the biggest purchase of your life, one of the next issues to consider is how you wish to hold the beneficial interest in the property.
This is one of the questions that your solicitor will ask you during the purchase process.
Who holds the ‘legal interest’ in the property can be seen by looking at who the legal owners are on the title of the property, which can be found at the Land Registry, the central register of who owns which property.
The ‘beneficial interest’ in the property describes who is actually entitled to the money if the property were to be sold.
Usually the owners of the two types of interest are the same people, i.e. a couple who buy a home together with a mortgage.
If however you may decide to buy a property with your partner, a friend or a brother or sister, you may decide to own the beneficial interest in the property as ‘tenants in common’.
This is particularly useful if for example, you make a different contribution to the deposit etc.
In these circumstances we would usually recommend a Trust Deed is prepared at the time of purchase setting out the parties’ respective interests in the property.
This means that if the property is sold the Trust Deed will determine how the monies are divided.
This also means that if one of you dies your interest in the property will usually pass under the terms of your Will to your relatives rather than passing automatically to the other owner or owners.
It is important that when buying a property you consider how to hold not only the legal but also the beneficial interest.
At the Owen-Kenny Partnership we have specialist solicitors who can advise you on not only the purchasing of your house but also the appropriate Trust Deed. Contact Owen Kenny on 01243 790532 or firstname.lastname@example.org for further information.