Questions - Page 2
Why choose co-ownership? | Why Co-housing | How does co-ownership work? | What about Land Tenure? | Personal and Legal Matters | HIPS - Home Information Packs | Further Information
How does co-ownership work?
England and Wales
Joint Tenancy: In this instance the joint tenants (the property owners) each own the whole of the property.
Tenancy in Common: Tenants in Common each have a share of the property; they may have an equal share, or the share may be split unequally according to differing investments. These joint owners will have their share of the property defined in a Deed of Trust drawn up by a solicitor. As Tenants in Common the joint owner is free to leave their share of the property to whoever may be named in their will. The title deeds of a property can list up to four tenants in common. Larger numbers of co-owners would probably form a company which would own the property or properties.
Scotland
In Scotland Common Property is the legal equivalent of Tenants in Common.
What about Land Tenure?
Freehold Estate: Freehold means that the freeholder owns the land, however there may be restrictions or conditions attached to the ownership.
Leasehold Estate: The property owner has rights over the land for a specified length of time only. During the period of the lease, an annual ground rent is payable to the freeholder (the landowner).
Commonhold: Commonhold is a new type of property ownership subject to the provisions of the Commonhold and Leasehold Reform Act 2002 , the Commonhold Regulations 2004 and the Commonhold Community Statement, which provides for a common hold association to arrange reserve funds and generally manage the building or buildings. Commonhold may well be the way forward for co-housing projects. The freehold estate in common hold is divided into units and common parts. Each unit holder owns the freehold of a unit, while the common parts may include part of the structure or it may comprise entrances and car parks. The freehold of the common parts is owned by the common hold association.
For further details, go to the Land Registry website.