Share:

In this month’s Foden Property Blog, Katie sits down with Sophie Price, a Director at Foden Solicitors to discuss the importance of writing a will when purchasing a property. 


Getting the keys to your first home is one of life’s big milestones. Whether you have managed to purchase your first home on your own or with a partner, there is a lot to be excited about. There are also lots of decisions to be made such as measuring up for new carpets and furniture and making sure you sort that life insurance policy out. However, another really important item to add to the list is making a will. 

When Should I Write A Will?

We would recommend you to write a will from the age of 18 and over. You might not think you have anything of value to leave, but everyone has some type of asset, even at 18. Whether it be a car, money in a bank account, your pets or a mobile phone contract. If you haven’t written a will, then legally there is nobody to deal with your estate if you were to suddenly pass away. 

Do I Have to Make a Will when I Buy a Property? 

There is no legal requirement to have a will in place when you purchase a property. However during the buying process, as you secure a mortgage, you will have also likely been advised to purchase a life insurance policy or maybe critical injury or employment cover. Alongside these policies we would recommend that now is also a really good time to write a will if you haven’t already done so. 

Who Will Own The Property If You Pass Away?

Let’s consider the following scenario: You have recently purchased your first home with your partner with whom you have a two year old child. Although you have been together for a number of years you are not married. You have both taken out life insurance policies so feel that you have safeguarded each other’s, and your child’s future, if one of you should pass away. But, have you really safeguarded their future? 

There’s a common misconception that because you have bought a property with someone and are living together as if you are married, that automatically your share will pass directly to your partner (and vice versa) if the worst were to happen. However, legally that is not correct. 

Essentially there are two ways which you will own a property with another person: 

  1. Joint tenants which means that on the death of one of you, the property will automatically pass on to the other person.

  2. Tenants in common. You might have a 50/50 share or you might each own different amounts of the property based on how much you have contributed to the purchase price. The concept with tenants in common is that where there is a restriction placed on the title, in the event of the death of one of the owners, their share of the property, however much it may be, is passed on according to the terms outlined in their will. (Or the laws of intestacy if there is no will in place.)

 

Can my Partner Inherit our Home if we Own it as Tenants in Common?

A really common misconception with unmarried couples is that because you own a property together you have a legal right to your partner’s share of the property. In reality, this is not necessarily the case, especially if you have purchased your home as tenants in common. If one of you dies and there is no will in place then their share of the property will not automatically pass to you. 

When someone dies without a will, the laws of intestacy are applied and their share of the property will go to a living relative such as your children (if you have them) or a sibling. Depending on the value of the estate left, your children would either inherit the full share or it could also be shared with other family members. Without a will in place, there is a real chance that you could end up jointly owning your property with your children (even though they might be well under the age of 18). 

However, if you are married and own a property as tenants in common without a will, then there are thresholds, known as a statutory legacy, at which your share is passed to your surviving spouse. Anything over that threshold is then split between your surviving spouse and any children (if you have them).

Regardless of whether you are married or not, it is really important to have a will in place to make sure your share of the property goes to the people or person you want it to go to. 

 

When Does Writing a Will Turn into Estate Planning?

As we move through our personal milestones of buying our first home and having children, we will often gain more assets as we get older. Perhaps you decide to buy an investment property or two; purchase stocks and shares or a collection of vintage cars. The more assets we accrue through life, the more complex our wills can become. 

Whilst for many people a simple will, either written by a solicitor or other professional, might be enough, for others a more detailed document is required. 

As well as writing a will when you purchase your first home, you should also make sure you keep it updated as your circumstances change. For example, if your partner is your only beneficiary but you now have three children, do you want them to inherit anything specific in your will? Would you like your home to remain with your surviving partner, but your financial assets such as shares, to go to another family member or a charity? 

Perhaps since writing your will you have inherited a significant amount of money from a family member. Do you want this money to go to your partner, your children, or back to siblings and their families? 

Seeking advice from a solicitor can be really helpful in ensuring your estate goes to the people or person you intended it to go to. 

 

Will Writing Doesn’t Have to be Complicated

We know that no one likes to have these conversations or think about the “what ifs” in life, but it is really important that we all make the effort to ask the difficult questions. 

Wills are not just something to think about as you get older. We all need to be open minded about the future - what would happen if something happened to you or your partner? We all need to think about and talk about these subjects as it helps the people left behind as much as it helps us.


For more information on writing or updating your will, please get in touch with the team at Fodens Solicitors or watch the latest episode in our Ask The Agents podcast series.