News & Insights

Due to the blended society we live in, there could be a million and one reasons why the property we live in may only be in one person’s name. However, when the time comes to add another person onto the mortgage or title deed, what exactly needs to be done? When the legal title of a property is transferred from one name, into joint names, the process is known as a Transfer of Equity.

There are a number of factors that you need to consider when you look at placing a property into joint names. We’ll look at these points in more detail below:

Types of Joint Property Ownership

The two ways a property can be jointly owned (by two or more people) in England and Wales are:

• Joint tenants
• Tenants in common

Which type of ownership is right for me?

Joint tenants

This means the whole of property is owned in an equal share by those on the title. Neither person owns more than the other. However, when one owner dies, the property passes into the sole name of the surviving owner under the legal process of Right of Survivorship.

Tenants in common

This differs slightly from the above, as the amount of property owned by each owner can differ. Usually it’s a 50/50 share, but can be altered to reflect the financial contribution or ‘beneficial interest’ each person has made to the property. So for example, if one person has provided the deposit for the property, you may see a 60/40 split.

When one owner dies, their share in the property will be passed on either in line with their wishes in their Will or using inheritance laws if they don’t have a Will.

You need to think carefully about which type of ownership suits your personal circumstances.

Updating the Title

Your Title will also need updating from sole to joint names. Your conveyancing solicitor will either check the HM Land Registry, if your property is registered for the deeds, or ask you directly for them.

They will then prepare a Transfer Deed which will need to be signed by all of the joint owners, as proof of the transfer of the title. It’s on this document, that the type of ownership you’ll set out.

It is here you may be advised to create a Declaration of Trust – if you’ve decided to own the deeds as tenant in common, which you and the joint owner can both sign to record the specific intentions around the split.

Other things to consider

If your mortgage is in a single name, this will need to be altered to add the joint owner onto the mortgage

If your property is leasehold you may need to require consent from the freeholder or managing agent regarding the joint ownership. Your conveyancing solicitor will be able to advise you on this if necessary.

Contact us

For further advice or information please contact one of our Residential Property experts.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.