If you are going to co-own your home, there are two ways to hold the property, as joint tenants, or tenants in common. Where a property is held by joint tenants, by the principle of survivorship should one owner die their share will revert to the other owner automatically. However, where ownership is held as tenants in common, each owner holds their own distinct share that will follow their will when they die, and not be automatically left to the other owner.

Thought should be given to how a buyer will want to fund and own the property, particularly if the property is being bought for a child (a child will often benefit from first-time buyers relief, which will including a saving on the SDLT payable). Bank of Family purchases are commonplace in London, but the varying ownership types and funding options can have different impacts, it is important to speak to a professional advisor to review your options.

A cohabitation agreement is a vital consideration for buyers who will share the property with a third party, i.e. a friend or partner that has not financially contributed to the purchase; this can ensure the third party does not acquire a financial interest in your property if that is the intention throughout the duration of their stay. In reality, it is easy for situations to arise whereby an occupier does acquire an interest in the property, for example funding remedial works or being a stay-at-home parent.

The lure of a bargain can be difficult very tempting. It is always advisable however to obtain legal advice beforehand and in good time before the auction. Buying a property at auction has its perks, but there is plenty for prospective bidders to be aware of as the property could have problems which are expensive to resolve or in some cases there could be defects on the title so that the properties cannot be sold or mortgaged on the open market.

• The majority of buyers finance their purchase in part with funds borrowed from a bank. The amount that can be borrowed will depend on circumstances but a maximum of around 75% is common with 60% perhaps being typical. Invariably the lender will require their loan to be secured by way of a first legal charge over the property. The lender will require legal representation and this is either provided by their own independently appointed solicitors or, more commonly, by the buyer’s own solicitors but as a separate instruction. Either way the legal costs will be payable by the borrower. Lenders offer many types of mortgage, for example repayment or interest only, owner-occupied or buy to let, and can impose all sorts of specific conditions. While solicitors will advise on the conditions relating to the property they will not normally advise on interest rates and other financial conditions unless specifically asked to do so.
• Taking out a mortgage on a property may be part of a tax planning exercise. For example, for offshore buyers a loan may reduce their exposure to UK Inheritance Tax. Specific advice on this should be sought before proceeding with a purchase.
• There are also specific finance arrangements available from a limited number of lenders to those who are, for religious or cultural reasons, unable to enter into a standard UK loan arrangement. These Sharia compliant products are considerably more complicated from a legal point of view and will result in higher legal fees.

A significant number of property purchases continue to be undertaken as corporate transactions. Setting up a special purpose vehicle (SPV) to hold property is a well-known structuring device.

The purchaser has the choice to acquire the property directly from the seller SPV or to acquire the shares in the SPV itself. Where the SPV has entered into various contracts in relation to the property, a sale of the SPV’s shares will not require such contracts to be assigned or novated to the new owner together with all the resulting paperwork, time and costs that this process entails; instead, the SPV itself will continue to be the direct property owner and consequently the contracting party, albeit with new shareholders.

Notwithstanding the benefits of a corporate deal, which we have written about previously, such a transaction raises various additional issues and expert advice should be sought.