Are you considering buying a house with friends or a partner? It can be an excellent way to get a foot on the property ladder, especially for a first time buyers in Newcastle. It’s essential to understand the commitment you’re making and have a legal agreement in place to protect each other.

Benefits of Buying Together

Increased Affordability – By pooling your financial resources, you can afford a more substantial deposit, which may qualify you for better mortgage rates. This combined purchasing power can also open up access to a wider range of properties.

Shared Costs – Mortgage payments, utility bills, maintenance, and other expenses can be shared, reducing the financial burden on each individual. This shared responsibility can make home ownership more manageable.

Increased Borrowing Capacity – Lenders often consider the combined income of all buyers, potentially increasing the amount you can borrow. This can be particularly advantageous in competitive housing markets.

How many people can jointly own property?

Up to four people can jointly own a property. This arrangement can be beneficial for friends or family members looking to combine their resources to purchase a home. Just make sure to have clear agreements in place regarding each person’s financial contribution, responsibilities, and the process for resolving disputes.

What are the differences between joint tenancy and tenancy in common?

Joint Tenancy – Each person owns an equal share of the property. If one owner passes away, their share automatically transfers to the surviving co-owner(s). This arrangement is often chosen by married couples, or in a relationship.

Tenancy in Common – Each person owns a specific share of the property, which can be unequal. This arrangement allows each owner to pass on their share to someone of their choice in their will. Tenancy in common is suitable for friends or family members who may want the flexibility to bequeath their share to someone other than the co-owner(s).

What happens if a joint owner stops paying the mortgage?

If one party stops meeting their mortgage payments, the other co-owners are still jointly liable for the debt. This means the lender can pursue any of the co-owners for the outstanding payments.

Date Last Edited: August 2, 2024