If you purchase a property as tenants in common, it is a good idea to expressly state what portions of the property you both own through a declaration of trust. Without a declaration of trust, you are leaving it to be implied by the financial contributions you have both made.
Tenants in common do not have a right of survivorship like joint tenants do, which means that when one tenant dies the other tenant does not automatically inherit the rest of the property. The deceased tenant’s portion will go to whoever they have named in their Will. Drawing up a declaration of trust is a way to give you both the same rights as joint tenants.
A declaration of trust can include important details such as:
• How much each person will contribute towards mortgage repayments.
• What percentage share of the property each person owns. For example, if one partner pays most of the mortgage their share may be greater.
• What will happen if someone dies or moves out.
It is sensible to have a declaration of trust drawn up by a solicitor when you purchase a property as tenants in common. Doing so can avoid an expensive, prolonged legal dispute over property if your relationship ends.