If you are buying a house or flat with someone else in England or Wales, you will need to decide how you want to own the property together. The two options are joint tenants or tenants in common.

Each has very different legal and financial implications, so it is important to understand how they work before making a decision.

What Does It Mean to Be Joint Tenants?

Joint tenancy means both owners own the whole property equally, regardless of how much each person contributed to the purchase price or mortgage. One of its key features is the Right of Survivorship. This means that if one owner dies, the surviving owner automatically inherits the entire property, even if a will specifies otherwise.

This form of ownership is most common for married couples and civil partners who want their property to pass automatically to the surviving partner.

A joint tenancy can be changed into a tenancy in common at any time by giving written notice to the other owner, and their consent is not required. In some situations, such as if one co-owner becomes bankrupt, the joint tenancy may be severed automatically.

What Does It Mean to Be Tenants in Common?

Tenancy in common means each owner has a specific share of the property, which can be equal or unequal, for example, 50/50 or 70/30. Each person’s share is a separate asset, and they can leave it to someone in their will or, in certain circumstances, sell or mortgage their share independently.

This type of ownership is often chosen by unmarried couples, friends, or investors, especially when each person is contributing different amounts to the purchase price.

When ownership shares are unequal, it is strongly advised to have a Declaration of Trust prepared by a solicitor. This document records each party’s share and ensures the sale proceeds are divided fairly if the property is sold or the co-owners separate.

The Key Difference – The Right of Survivorship

The main distinction between the two ownership types is what happens when one owner dies.

For joint tenants, the property automatically passes to the surviving co-owner. You cannot leave your share to anyone else in your will.

For tenants in common, there is no automatic transfer. Each owner can leave their share to anyone they choose through their will.

Which Ownership Type Should You Choose?

The best choice depends on your situation and goals.

Joint tenancy is generally preferred by couples who want the property to pass automatically to the surviving partner, do not mind equal ownership regardless of financial contributions, and do not need to leave their share to someone else.

Tenancy in common is often chosen by people who contributed different amounts to the purchase price and want their ownership to reflect this, who wish to leave their share to someone other than their co-owner, or who prefer the flexibility of clearly defined shares.

Why Legal Advice Matters

Choosing the wrong ownership structure can lead to complications in the future, especially if you separate, want to protect your financial contribution, or plan to leave your share to someone in your will.

At Fard Solicitors, our experienced residential property solicitors in London and Surrey can advise you on whether joint tenancy or tenancy in common is right for you, draft a Declaration of Trust to protect your interests, and handle every step of your conveyancing process.

Buying a property with someone else?
Contact us today at 0207 993 4484 or info@fardnco.com to ensure your property is owned in the way that best protects you and your loved ones.