• Tenants In Common

    By Guest on 20th Feb 2018

    My father and I are purchasing a property as tenants in common. I will be contributing £570,00 and my father will provide £450,000. My father has savings which he wants to use to refurbish and extend the property. He has terminal cancer. Can you please advise on what share of percentage to hold the tenants in common for us?

    Many thanks

    Brenda Kelly

  • 3 Answers

    By Guest on 21/02/2018

    Tenants in common means that you both together own the whole house but each obe of you has a share as a percentage of the property. On the basis of the share of money each one puts into the property, you will own about 56% and your father 44%.
    However, bearong in mind thst your father is terminally ill, and unless your father has other plabs fir his share of the property after his death, you may consider whether you should buy the property as joint tenants.
    Joint tenants own the property jointly as a unity and so if one dies the other still owns the whole of the property.
    In contrast, if one of the tenants in common dies, his share becomes subject to inheritance and it is distributed accordong yo inheritance rules. It will also be subject to inheritance tax rules and tsx may become payble.

  • By Guest on 21/02/2018

    Thank you for your response.

    If we were joint tenants then I would not ha e to pay inheritance tax?

  • By Guest on 21/02/2018

    Why would you suggest I opt for joint tenants as I would have to pay IHT?

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