Property What you need to know if you're buying jointly

High prices mean teaming up is often necessary - but it needs straight talking (and legal help) to avoid the pitfalls, says Emma Lunn

- Emma Lunn

Average UK house prices are continuing to march upwards - rising more than £80 a day last month, according to Nationwide. With affordability an ever-increasing challenge, it is no wonder growing numbers are joining forces with someone else to get on to the property ladder.

A recent survey of 2,000 adults aged 18 to 45 who do not own a home found 40% believed they would never be able to buy a property by themselves.

Buying a property jointly has several advantages over going it alone: you can pool your savings to put down a bigger deposit; potentially borrow more for your mortgage by combining your incomes; split home-buying costs such as stamp duty and legal fees, too; and divide up household bills once you have moved in.

But it is crucial to understand the various financial and legal aspects involved. How best to own the property will depend on if you are married or cohabiting, or if you are buying with a friend or family member. (Note that our advice mainly covers England and Wales, as the law is different in Scotland.)

"The main potential challenges are if one person wants to sell up or move out before the other," says Lisa Parker at the broker L&C Mortgages. "It's vital to discuss what you will do if this happens before you make the purchase, so you know where you'll both stand."

Joint or 'in common'?

When two (or more) people buy a property together, they have the option to buy as "joint tenants" or "tenants in common". Joint tenants means both parties have equal ownership of the property. If one person dies, their 50% share goes to the other owner - you can't leave it to someone else in your will.

With tenants in common, each party owns a specific share of the property. This should all be recorded in a legal document - called a deed of trust or declaration of trust - drawn up by a solicitor.

Buying with a spouse