Joint tenants or tenants in common? What you need to know about joint property ownership

If you’re purchasing a property with somebody else, one of the most important things to decide is how you each want to own the property.  

The type of legal arrangement you choose outlines the ownership rights of each party and determines what will happen to the property in certain circumstances, such as if a relationship breaks down or if one owner dies.  

The type of ownership arrangement you decide isn’t permanent, however you’ll need to update the HM Land Registry if you wish to change your ownership type.  

Knowing the differences between the two will help you decide which type best suits you and your circumstances.

In the UK, shared property can be owned in one of two ways – either as Joint Tenants or Tenants in Common.  

Joint Tenancy agreements are great for married couples or partners who wish for the property to automatically pass to each other in the event of death, whereas Tenancy in Common agreements are ideal for owners who want a bit more flexibility from their property ownership. 

Most joint homebuyers who are married or in a long-term relationship will purchase as Joint Tenants. This means the legal ownership of the property is split equally between both or all owners.  

• In a joint tenancy arrangement, all owners share the property equally, regardless of their contribution to the initial purchase 
• This means if one owner passes away, their share automatically goes to the other owner(s) 
• You can’t pass on your ownership of the property in your will, however it’s still important you make one to outline what happens to the property when both of you have died  
• If you sell the property, you are entitled equally to any proceeds of the sale unless otherwise agreed  

A joint tenancy agreement may be severed by either party at any time, which converts the title to a tenancy in common in equal shares.

This means each owner still holds an equal share of the property but offers a bit more flexibility in how the property is inherited if one party dies or wishes to move out.  

Most business partners or unrelated joint buyers typically purchase as Tenants in Common.  

A Tenancy in Common arrangement is particularly useful when co-owners contribute different amounts at the purchase stage of a property and wish for this to be reflected in how much of it they legally own. The share of a ‘tenant in common’ is separate property and will not automatically pass to the survivor if one party dies. 

• For a Tenancy in common, each person can own a different percentage of the property 
• As a tenant in common, you’re able to give your share of the property to anyone in your will; if you don’t have a will, it will pass according to the rules of intestacy (the laws of inheritance without a will) 
• When buying as a tenant in common, each party will usually enter a deed of trust – this agrees the relative rights of each owner  

If you buy a property as Tenants in Common, whether in equal or unequal shares, it’s very important you both make a will so that you can determine what happens to your share of the property when you die.

When deciding between whether to purchase as Joint Tenants or Tenants in Common, the most important consideration is what you wish to happen to the property if you die, as well as how you wish ownership interests to be structured during your lifetime.  

It’s important to consider the following to decide the type that best suits you.

Joint Tenancy

• Includes a Right of Survivorship agreement 
• This means when one owner dies, their share automatically passes to the surviving owners, and the deceased owners share cannot be left to someone else in their will 

Tenancy in Common

• Doesn’t include a Right of Survivorship, meaning each owner’s share simply forms part of their estate when they die  
• This means shares of the property can be left to beneficiaries in a will  

Joint Tenancy 

• Offers a simple inheritance arrangement, as it avoids the need for the deceased owner’s share to pass through their estate  

Tenancy in Common

• Provides more flexibility for inheritance planning, and property shares can be left to multiple beneficiaries  

The ownership type you decide will likely depend on your relationship to the co-owner(s). Is the person you’re purchasing with a family member, partner, friend or business partner, and do you expect ownership arrangements to remain unchanged long-term? 

Married couples or partners in long-term relationship typically opt for a joint tenancy arrangement, whereas unrelated buyers or investors often prefer to be tenants in common.  

If one owner contributes significantly more than the other(s)... 

Joint Tenancy

• Each owner’s financial contribution is not reflected in the ownership shares of the property  

Tenancy in Common

• Each owner’s financial contributions are reflected in the percentages of the property that they own – this is outlined in a Deed of Trust 

Choosing whether to purchase a property as Joint Tenant or as a Tenant in Common is an important decision, however if your circumstances or preferences change, the arrangement isn’t set in stone. However, you will need to update the HM Land Registry to change to your preferred ownership type.  

Overall, if you’re happy owning equal shares of a property, and wish for the property to automatically pass to the surviving owner in the event of death, then you should opt for a Joint Tenancy. 

Whereas if you each want different percentages of ownership, wish to leave your share to beneficiaries in your will, or need greater flexibility for family or estate-planning purposes, you should purchase as Tenants in Common.  

If in doubt, your conveyancer or solicitor will be there to advise you through decisions like these at every stage of your property purchase.