Guide to Joint Ownership
Joint Ownership means clubbing together to share the deposit, mortgage payments and bills. It can be a way onto the property ladder which may mean leapfrogging the first rung or enabling you to live in your favored area.
Is Joint Ownership Right For you?
Pros
- You share the deposit between you, so you don't have to save so much to start with.
- You share the monthly mortgage payments.
- You share the initial costs of buying a property (solicitor's fees, etc).
- You are investing in your future, rather than paying rent.
- When you sell, if the property price has increased, you will have capital to put down on a place of your own.
- You get onto the property ladder earlier rather than renting or living at home.
- You can sometimes afford to shorten the term of the mortgage, thereby saving on interest.
- The formal cohabitation agreement helps to avoid conflict, which may not be the case if you buy with a spouse or partner.
- You share responsibility for the maintenance, repair and redecoration of the property.
- You share the household bills.
- You share the housework.
Cons
- You need legal documents, including wills, to protect your investment, which means additional costs alongside the usual house-purchase costs.
- One or more of you may wish to sell before the others are ready to move on and you may have to make alternative arrangements (such as finding a tenant) in order to pay the mortgage.
- Everyone is responsible for the mortgage, so if one person defaults, the rest of you have to cover the payments.
- You will need mortgage payment protection and life assurance.
- The process is quite bureaucratic and you will need records to keep track of payments, etc.
Your home may be repossessed if you do not keep up repayments on your mortgage
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