Five Types of Property Ownership – Which is right for you?

When thinking of buying property, there are many things to think about; how many bedrooms do I want; do I need a garage; is there room to add a granny flat; who will do my conveyancing…etc. You also need to consider how you want to own the property. There are actually five types of property ownership. But which one is right for you? We had a chat with Peter Mason, Conveyancing Solicitor at our Penistone Office to talk through some of the options. Here Peter shares his thoughts on the five different types of property ownership.

Sole Proprietor

The simplest way to own a property is on your own. You can buy a property on your own with cash, with a traditional mortgage or some lenders may also offer a ‘joint-borrower-sole-proprietor mortgage’.

A joint-borrower-sole-proprietor mortgage (JBSP mortgage) allows a parent (or another family member) to contribute to the mortgage, without being a co-owner. An ideal solution to help a family member get themselves on the property ladder.

Co-Ownership

If you are buying a property with someone else, it is important to understand the basis of ownership type you are entering into. There are three main kinds of joint ownership:

Joint Tenants

This is where both parties own the property equally. Joint tenants is the most popular method of homeownership for those who are either married or in civil partnerships. Upon the sale of the property, the proceeds will automatically be divided 50/50, regardless of contributions made to the purchase price or subsequent improvements.

If one joint owner dies, his or her share automatically passes to the surviving owners without payment. The transfer of the deceased owner's interest to the other joint owners is automatic and is not affected by any Will of the deceased owner.

Tenants in Common

This is when two (or more) people own the property, but the shares in the property are specified. They may own property jointly as tenants in common in equal shares or unequal shares. This form of ownership can record differing shares, particularly if one party has contributed more of the purchase money than another.

If any owner dies his or her share of the property does not automatically pass to the other owner(s) but will form part of the deceased estate. It will pass to either the beneficiaries under the Will or if no Will has been made to the deceased next of kin.

Choosing to own a property as tenants in common can help ensure that shares of a property are protected from third-party claims. For example, a couple who own a property jointly can choose to leave their share of the property to a child or close relative when they pass away.

Shared Ownership

The Shared Ownership scheme is a cross between buying and renting. Under the Shared Ownership scheme, you would buy a portion of the property; anywhere between 10% and 75%. The Shared Ownership provider would own the rest of it which you would rent from them.

The Shared Ownership scheme is intended to give those that are unable to afford to purchase their own property outright the opportunity to get onto the property ladder at a fraction of the cost.

Under the scheme, you can buy small increments of the property until you take full ownership.

Help to Buy Equity Loan Scheme

Help to Buy is another government scheme to assist first-time buyers struggling to save a deposit for their first home.

Under the Help to Buy Equity Loan scheme, a first-time buyer will only need to raise a minimum deposit of 5% of the purchase price. The government will contribute up to a further 20% (40% in London). The result is that a mortgage of just 75% is required, which will be much more accessible to first-time buyers.

Help to Buy Equity Loans can only be used by first-time buyers to buy a new-build home, and the builder must be a registered Help to Buy homebuilder. There are also maximum property purchase values to consider that vary by region. In Yorkshire and the Humber, the maximum purchase price is £228,100.

Buying a Property with Pennine Law

Our conveyancing solicitors can handle all the legal aspects of your property purchase or sale. We have experience in managing transactions for all five property ownership options, so you can trust us to complete every detail accurately and as efficiently as possible.

Here’s what you can expect from Pennine Law’s conveyancing solicitors:

  • Fixed fees – so you know how much your conveyancing will cost from start to finish.
  • Conveyancing Quality Scheme accredited lawyers.
  • A friendly team that responds quickly to calls and emails.
  • Proactivity – no delays will ever come from our side. We’ll always be pushing for progress.
  • Regular updates – so you are never left in the dark about what stage your sale or purchase is at.

Get in touch with our Help to Buy conveyancing lawyers in Hoyland and Penistone

Get in touch with our friendly, expert conveyancing solicitors in Hoyland and Penistone to get your next home move underway.

We have local offices on Market Street in Hoyland and on Market Street in Penistone.

Give us a call at your nearest branch or fill in our online enquiry form, and we’ll give you a call back as soon as possible.

Meet the team

William Hoyland - Solicitor - Hoyland & Penistone
Managing Director
Peter Mason
Conveyancing Solicitor
Gaynor Landon - Residential Conveyancer - Hoyland
Residential Conveyancer