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I am a Tennant in Common with my partner. We contributed evenly for the deposit. Due to our incomes,we agreed he would be responsible for 55% and I would be responsible for 45% of the repayments. Does this mean he owns 55% of the property and I own 45% ?
Responses
Hi Raylene,
If your property title lists your ownership as Tenants in Common as 55/45, then that would be correct. However unless you have set your home loan up as a 'property share' arrangement in the same proportions (which only a couple of lenders do), then the repayments are negotiable between you.
It seems however that if you contributed evenly for the deposit that perhaps you didn't specify a 55/45 Tenants in Common share of the title but 50/50. In this case, no matter how much each person pays on the loan, then the property is owned equally by both of you.
I'm happy to discuss any further questions over the phone (my mobile is 0400794687), and also recommend that you query the solicitor who looked after you for the property purchase about the original set up of the property title as Tenants in Common. If it doesn't reflect your intentions, then it is possible to have them change it.
Kind regards,
Deb Richards
BBus, GDipEd, DipFMBM
www.inlinehomeloans.com
101 Mulgrave Rd, Parramatta Park, 4870
Hi Deb
Thank you for your response. I will look in to the property title, that would be with Cairns Council!?
The Titles Registry Office
Department of Natural Resources and Mines
William McCormack Place
Level 4 Building 2
5b Sheridan St
Cairns
8.30 - 4.30 M-F
Phone 1300 255 750
Hope this helps!
Cheers,
Deb
Morning Deb
Can you advise me my rights when selling my share of tenants in common at 50/50 ownership, e.g. At what value is reasonable to sell my share, who can I sell too?
Thanking you so much for your previous responses, it certainly has helped.
Hi Raylene,
Unfortunately I am not a lawyer so I am unable to give you legal advice regarding selling a tenants in common share. I would advise you to check with a solicitor that is skilled in this area. Normally in such circumstances a professional valuation is done on the property to determine the value of each share (conducted by a professional valuation firm - not simply a real estate appraisal).
From a lending perspective, any mortgage on the property will need to be refinanced to include any new owner (even if written under a 'property share' arrangement). Any new part owner will be legally tied to the lending of the other owner, with each having to be a 'security guarantor' for the other, so due to this fact both the new and remaining owner have to agree that their financial liabilities will be legally tied together in this way - so this often determines who you can sell your share to. However if there is no mortgage on the property, I believe that you do actually have the legal right to sell your share to whoever you want to - although please do seek legal advice regarding this statement as advised above.
If the other owner is just 'taking over' the loan (and therefore 'purchasing' the other share), the bank will still need to see evidence of the ability of the remaining owner to repay the loan, which would mean a full financial review of the remaining owner (eg income and details of any other loans/credit cards, dependents etc) - which is essentially the same process as 'refinancing'.
Hopefully this answer has provided further clarity; I'm glad to have been of some help. Sometimes expert advice can make complicated decision making just that much easier - the main reason why over 50% of Australians now use a mortgage broker to help them with their lending situation.
Have a great end to the Easter break!
Kind regards,
Deb
Deb
Again, Thank you for your reply, I appreciate it very much. Your information has been very valuable for me. Many thanks. Cheers Raylene
Raylene, It's nice to hear form someone in the suburb named for my forebears.
When you own property as tenants in common the percentages are set out in the title documentation. It may , for instance, say "tenants in common in equal shares" which means you each own 50%.
If you have had a bust up with your co-owner the division of property in a family law property settlement will be subject to broader considerations and you should talk to a family lawyer ( like me, or someone else).