What is Joint Tenancy?
Joint tenants own the property equally and as a single legal entity. This means:
- Each owner has an equal share (50/50 if two owners, or split equally among more)
- If one owner passes away, their share automatically passes to the other owner(s) under the right of survivorship – even if their will says otherwise
- No owner can sell or transfer their share without the agreement of all co-owners.
Who is Joint Tenancy Best For?
Married couples or civil partners who want equal ownership and automatic inheritance.
People who don’t want their share of the property to go to anyone other than their co-owner(s) upon death.
Downsides of Joint Tenancy
You cannot leave your share in a will – it automatically transfers to the other owner(s).
If the relationship breaks down, splitting ownership can be complicated.
What is Tenancy in Common?
Tenants in Common each own a specific share of the property, which can be equal or unequal (e.g., 70/30 or 60/40). This means:
- Each owner’s share can be passed on in a Will rather than automatically going to the other co-owner(s).
- Shares can be sold or transferred without the consent of all owners (though this may require legal steps).
- This is commonly used for investment properties, blended families, or where owners contribute different amounts.
Who is Tenancy in Common Best For?
- Unmarried couples or friends buying together who want ownership shares to reflect their contributions.
- People who want to leave their share to their family or other beneficiaries rather than their co-owner(s).
- People who are on a second marriage or have children from a previous relationship.
- People who want to protect their share from being depleted after they die by unexpected costs faced by their surviving spouse or partner.
- Business partners or investors purchasing property together.
Downsides of Tenancy in Common
There is no automatic inheritance, meaning the surviving owner(s) may not automatically get the deceased’s share.
If disputes arise, selling or dividing the property can be legally complex.
Can You Change from Joint Tenants to Tenants in Common?
Yes, this process is called severance of joint tenancy. It is often done when relationships change, such as in a divorce or if owners want to specify different shares. A solicitor can help with the legal paperwork.
Which Option Should You Choose?
The right choice depends on your relationship with your co-owner(s), financial contributions, and inheritance plans. If you’re unsure, seek legal advice to ensure your property ownership aligns with your long-term goals.