Property Co-ownership
Property co-ownership is where two or more people jointly own
the property; this could be married couples, friends, a group etc. The ownership
is shared equally/unequally amongst the owners.
The following are few of the main advantages of co-ownership:
·
Enables you to increase your
deposit for the home
·
Increases your borrowing power
·
Can afford to buy an expensive
house
·
Enables you to split the
different costs involved in buying and running the house, which could include
stamp duty, legal costs, maintenance fees etc.
·
Allows each owner to sell
their share or leave the ownership whenever they choose.
The following are few points that you should be aware in
regards to co-ownership:
Owners especially when in a group should get an ownership
agreement, as if any issues/disagreements are raised due any circumstances; they
can be settled under the agreement.
Adequate steps need to taken towards the financial risks that
are associated with co-ownership, as each party is liable for others towards the
mortgage. Situations like one party defaulting on a loan payment need to be
considered and documented on to the ownership agreement.
First home owners grant: you could be eligible for the First
home owners grant, but the government provides only one grant in respect to the
property.
There are two types of co-ownerships, Joint Tenancy and
Tenancy in common.