Affordability is the main reason for a joint purchase cited by one in four, the research by Santander Insurance has found. It also found that 39% of these transactions will be between friends, family members, and unmarried couples.
Some 22% of those who are planning or considering a joint purchase in the next two years are doing so with their unmarried partner while 13% will share the purchase with their parents and 4% expect their home purchase to be made jointly with someone else such as a friend or other relative.
This contrasts with current figures where just 7% of people own a home with an unmarried partner, 3% with their parents and 2% with a friend or other relative.
Santander’s study highlights that almost half, some 44% of existing joint home owners have no life insurance cover and a further 27% of those who are planning or considering joint home ownership have no plans to buy it.
The research also shows that of those planning a joint purchase, unmarried couples are almost twice as likely as married couples, 39% versus 21%, to do so without life insurance.
Santander is reminding all joint home owners, regardless of their relationship, of the importance of life cover, to ensure co-owners, family and dependents are protected, should something happen to either party.
The main reason for buying jointly, cited by 23%, was that shared ownership is the only way they can get a foot on the ladder. Only a fifth, 21%, of those planning a joint purchase will do so simply because they want to live with the other person and 16% will buy jointly because it will leave them less financially stretched.
Also, some 15% will do so in order to afford a bigger property and 9% of those hoping to buy jointly in the next two years say their main motivation is taking advantage of a good investment opportunity.
‘Sharing the purchase of a property, whether that’s with friends, family or a partner, is a great way to spread the financial burden of home ownership. Most people entering into a home purchase will be looking to keep costs down, but we’d urge people not to cut corners when it comes to life cover, as it provides a vital safety net for those around you,’ said Alan Mathewson, head of Santander Insurance.
When asked how they would cover the remaining financial commitments in the event that the person they own a home with was unable to make them, only 38% said they would do so through their own financial means. A quarter say they would rely on the other person’s life insurance, 17% would be forced to sell the property and 9% would seek financial help from family and friends while 6% of those questioned would risk repossession.
‘Our research highlights that the majority of those who jointly own or hope to do so, would not be able to cover the full financial commitments by themselves, which really does highlight the importance of life insurance cover,’ added Mathewson.
