Joint Tenants Set-up

[hwd007]

Tenants in Common Set-up

I have found a property but it's too expensive. I don't have the equity to buy this property on my own, but I was thinking of trying to buy it with my nephew. The asset share would be 2/3 me and 1/3 him. Now questions

1. how easily can this be set-up ? I'm thinking a Tenants in Common arrangement due to the legal interest not being equally dividied.

2. Who sets it up ? Solicitors ? Accountants ?

3. Getting the bank loan. How do the banks look at this ? who keeps the title if we use different banks ?

Thanks

 

[Nimee]

Hi hwd007,

I think you are after tenants-in-common not joints tenants. Joint tenants is 50-50 split. It is set up through a solicitor. Do a search on tenants in common; I think there was a lot of discussion while back.
Sorry I don't know who keeps the title

 

[hwd007]

thanks Nimee I have changed it to that. i.e. Tenants in Common

 

[sanchez]

HD - easy to set up, but just beware of "joint and several liability" in terms of the loan. This means that the bank will see each of your liabilities as being the entire loan. IT may make it hard for your nephew to get additional loans down the track, unless you intend to continue buying more together.

Sanchez

 

[sanchez]

that is of course assuming that you have one loan. If you get two loans then it will mean that one bank has a second mortgage - which they don't like to do.