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Joint Ownership: Everything You Need to Know

Sep 25, 2024
Joint ownership Your guide to paperwork
Looking to buy a house with your other half? Joint ownership might be the way to go. This arrangement can help you get onto the property ladder quickly and save for a bigger deposit. Our handy guide explores the ins and outs of joint ownership, from finding a home that suits you both to gathering the essential paperwork.

Key Takeaways

Joint Tenancy:
  • Both owners have equal rights to the entire property.
  • If one owner passes away, their share automatically transfers to the other owner.
  • Common choice for married couples and unmarried couples without children from previous relationships.
  • No specific paperwork for joint tenancy; both names appear on the Title Deed.
Tenants in Common:
  • Owners can have different shares of the property (not necessarily equal).
  • Each owner’s share can be passed on in their will.
  • Useful for friends or relatives buying together.
  • If one owner wants to sell their share, they can do so.
Documentation for Joint Ownership mortgage:
  • Provide usual paperwork:
  • Passport or driving license for identity.
  • Utility bills.
  • Last three months’ payslips.
  • Bank statements (last three to six months).
  • Proof of benefits received.
  • P60 from employer.
  • Accounts & Tax Return if self-employed.

What does joint ownership mean?

Joint ownership means purchasing a house together as either ‘joint tenants’ or ‘tenants in common’. 
 
As ‘joint tenants’:
 
• You have equal rights to the entire property
• The property is automatically transferred to the other owner if you pass away
• You cannot pass on your property ownership in your will
• Both names appear in the title deeds as the ‘registered owners’
 
As ‘tenants in common’:
 
• You can own different shares of the property
• The property ownership does not automatically transfer to the other owner if you pass away
• You can pass on your share of the property in your will
 

Joint ownership paperwork

You’ll need to present the following joint ownership paperwork when buying a house:
 
• Proof of identity, such as a passport or driving licence
• Last three months’ payslips
• Bank statements from the last three to six months
• Proof of benefits (if applicable)
• P60 from employer
• Accounts & Tax Return (if self-employed)
 

Essential steps towards joint ownership

Explore the essential steps towards joint ownership below. 
 

1. Work out your finances

The journey towards joint ownership starts with understanding how much you can afford. Before you start house-hunting, consider the type of property you’d like to buy and your ideal location. This will give you an idea of your budget and help you determine how much you need to save for a deposit. 
 
Our guide to what mortgage can I afford covers everything you need to know. 
 

2. Create a budget planner to help you save

A budget planner can help you manage your finances and track how much you save and spend each month. Gather all your bank statements, household bills and receipts to get an accurate estimate of your outgoings. Remember to include one-off expenses and your pension contributions, too. 
 

3. Find a property that suits you both

Another important step towards joint ownership is finding a property that suits you both. Although you may have different needs and lifestyles, you need to find a good compromise. If you both work remotely, a house in the countryside could be ideal. If only one of you works from home, proximity to transport links may be a priority. Before deciding, consider your plans and whether your situation may change in the short or long term. 
 

4. Get your home valued

Once you’ve found your new home, your lender will assess it to estimate its value. You may want to arrange a house survey with an expert surveyor to ensure it doesn’t have significant structural issues.
 
There are three types of house surveys:
 
• RICS Home Survey Level 1 – A general overview of the property’s conditions
• RICS Home Survey Level 2 – A more in-depth survey of the property’s inside and outside state
• RICS Home Survey Level 3 – The most comprehensive survey type   
 
If the survey identifies major faults, you could renegotiate the selling price to account for the extra costs.
 

5. Invest in a high-interest savings account

Opening a savings account allows you to put some money aside and earn interest on it. Most savers won't pay any tax on the interest they earn. 
 
Investing in a high-interest savings account is a low-risk way to grow your savings, making it easy to step onto the housing ladder. You can earn up to 7% on your savings annually. 
 
Ready to find your new home? Browse our brand-new, energy-efficient properties across the UK, including modern 4 bedroom houses and 5 bedroom houses for all homebuyers.  
 
Explore our unique offers for a trouble-free move. Contact our Sales Advisers today to kickstart the homebuying process.  
 

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