Joint Tenants or Tenants in Common? Choosing the Right Way to Own Property Together

Buying a property with someone else is an exciting milestone, whether you're purchasing with a spouse, partner, family member or friend. However, one of the most important decisions you'll make during the conveyancing process is often overlooked:

How will you own the property together?

Many buyers are surprised to learn that there are two different ways to own property jointly, and the choice you make can have significant consequences if your relationship changes, if the property is sold, or if one of the owners dies.

At JB Property Law, we discuss these options with all joint purchasers to ensure they understand the legal and practical implications before completing their purchase.

The Two Ways to Own Property Together

In England and Wales, property can generally be owned jointly in one of two ways:

Joint Tenants

Despite the name, this has nothing to do with renting a property. When you own as Joint Tenants, all owners own the property together as a single legal and beneficial interest.

In practical terms:

• Each owner has an equal interest in the property.

• It does not matter who contributed more towards the deposit or purchase price.

• If one owner dies, their share automatically passes to the surviving owner(s).

• The property does not form part of the deceased owner's estate for inheritance purposes.

This automatic transfer is known as the right of survivorship.

Tenants in Common

Tenants in Common allows owners to hold distinct shares in a property. These shares can be:

• 50% / 50%

• 70% / 30%

• 90% / 10%

• Any other agreed proportion

This option is particularly useful where one person contributes more towards the purchase or where owners wish to protect their individual interests. Unlike Joint Tenants, there is no automatic transfer of ownership on death. Instead, each owner's share passes according to their Will or the rules of intestacy.

Which Option Is Best for Married Couples?

Many married couples and civil partners choose to own property as Joint Tenants. This is often because they want the surviving spouse to automatically inherit the property if one of them dies. However, Joint Tenancy is not always the best solution.

Where there are children from previous relationships, inheritance planning considerations, or unequal financial contributions, owning as Tenants in Common may provide greater flexibility and protection.

Every family's circumstances are different, which is why tailored legal advice is so important.

What About Unmarried Couples?

For unmarried couples, the decision can be even more important. Unlike married couples, unmarried partners do not enjoy the same legal protections if one partner dies.

Many people mistakenly believe that living together for many years creates "common law marriage" rights. In reality, no such legal status exists in England and Wales. If an unmarried couple own property as Joint Tenants and one partner dies, the deceased's share automatically passes to the survivor.

That may be exactly what they want. However, if either partner has children from a previous relationship or wishes to leave their share to other family members, ownership as Tenants in Common may be more appropriate.

Unequal Contributions? Consider Tenants in Common

A common scenario involves one buyer contributing significantly more towards the deposit. For example:

• One partner contributes £90,000

• The other contributes £10,000

If the property is owned as Joint Tenants, both parties generally have equal ownership regardless of their initial contributions. By contrast, ownership as Tenants in Common allows those contributions to be reflected in the ownership structure.

This can help avoid disputes later if the property is sold or the relationship ends.

Why a Declaration of Trust May Be Essential

Where owners choose to hold property as Tenants in Common, it is often sensible to put a Declaration of Trust in place. A Declaration of Trust can record:

• Each owner's share of the property

• How mortgage payments are treated

• Responsibility for maintenance and repairs

• What happens if one owner wants to sell

• Whether one owner can buy out the other

• Arrangements if one owner moves out

• What happens if the property increases or decreases in value

Without a properly drafted legal agreement, disagreements can become costly and difficult to resolve.

What Happens If One Owner Dies?

This is one of the most significant differences between the two ownership structures.

Joint Tenants

The deceased owner's interest automatically passes to the surviving owner. This happens regardless of what the deceased's Will says.

Tenants in Common

The deceased owner's share passes according to their Will. This can be particularly important where:

• There are children from previous relationships

• Owners wish to leave assets to different beneficiaries

• Estate planning is a priority

• Inheritance Tax planning is required

For this reason, anyone purchasing as Tenants in Common should strongly consider making or updating their Will at the same time.

Can You Change Your Mind Later?

Yes. It is possible to change from Joint Tenants to Tenants in Common through a process known as severing the joint tenancy. People often consider this after:

• Marriage breakdown

• Separation

• Changes in family circumstances

• Inheritance planning advice

• Business or investment considerations

However, changing ownership arrangements can have legal and financial consequences, so professional advice should always be sought first.

Buying Property with Family Members

Joint ownership arrangements are not limited to couples. Increasingly, parents are helping children onto the property ladder, or family members are purchasing investment properties together. In these situations, it is particularly important to clarify:

• Who owns what share

• Whether family members have a right to occupy the property

• What happens if the property is sold

• How proceeds will be divided

A Declaration of Trust can provide clarity and help avoid future disputes.

The Risks of Not Making a Decision

Many buyers simply tick a box without fully understanding the consequences. Unfortunately, disputes frequently arise years later when circumstances have changed. Relationship breakdowns, blended families, inheritance issues and financial disagreements can all lead to costly legal disputes that could often have been avoided with proper planning at the outset.

Taking the time to choose the correct ownership structure now can save significant expense and stress in the future.

How JB Property Law Can Help

Choosing between Joint Tenants and Tenants in Common is not simply a legal formality. It is an important decision that can affect your family, finances and future plans. At JB Property Law, we will explain the options clearly, discuss your circumstances and help you choose the ownership structure that best reflects your intentions.

If appropriate, we can also advise on Declarations of Trust and related matters to ensure your interests are properly protected.

If you are buying a property with someone else and would like advice on joint ownership, contact JB Property Law today.