Tenants in Common Mortgages
Tenants in Common Mortgages – Tenants in common mortgages are mortgages that enable more than one individual to joint purchase a property. In contrast to joint tenancy mortgages, tenants in common mortgages take into account the contributions made towards the property purchase, giving each of the purchasers a proportion of the equity in the property in relation to contributions, but can be divided equally if so required. Unlike with a joint tenancy, the liability for tenants in common mortgages does not get transferred to other co-tenants in the event the death of one of the named tenants in common.
As ownership of a specific percentage of the equity is transferred to the individual’s heir through the use of a will or other probate mechanism, tenants in common mortgages can have complications. If, for example, one of the tenants in common dies and their heir forces a quick sale to release their equity or to pay inheritance tax, it could result in other tenants having to buy the equity of the deceased tenant. Although, tenants in common are most widely used by couples who may not be married and are looking to purchase a home together.
Being a specialist mortgage product, tenants in common mortgages require specialist mortgage advice, tailored to your individual circumstance. We have worked for a wide range of clients with a vast array of mortgage needs, so have great experience locating the right tenants in common mortgages on the market, knowing when they are suitable. We promise to talk you through every stage of the application process, simplify all the jargon and make your life easy by filling in all the paperwork.
Call our mortgage broker team now on 020 3 216 2037 or complete the Mortgage Enquiry Online. As part of our service, we will call you back.