Buying a property with someone else? You might be surprised to learn that there’s more than one way to legally own it. The type of ownership you choose—whether as joint tenants or tenants in common—can have a big impact, especially if you’re contributing different amounts to the purchase or want to leave your share to someone in your will.
In this blog, we’ll break down the key differences between these two ownership options. If you’re unsure which is right for you, the team at Martyn Prowel Gartsides is here to help—just give your Conveyancer a call!
Joint Tenants
As joint tenants you hold the property equally. If a joint tenant dies their share of the property automatically passes to the surviving tenant, this is referred to as the ‘right of survivorship’. Because of this, joint tenants cannot pass their share of the property in their will.
A joint tenancy can be ‘severed’ which means the joint tenancy will then be converted into a tenancy in common. Once severed each tenant in common will hold the property in equal shares.
Tenants in Common
As tenants in common you can hold the property in equal or unequal shares. You can decide in what shares you wish to hold the property and create a Declaration of Trust outlining these shares. When a tenant in common dies their share will not pass to the other tenant automatically, instead their share will pass according to their will or the rules of intestacy if there is no will. This means unlike joint tenancy you can pass your share of the property to someone in your will.
When you sell the property as tenants in common this must be agreed and sold by everyone the same as you would as joint tenants.
If you decide to hold the property as tenants in common, a restriction will be entered on the title.
How to decide?
There is no right or wrong way to decide whether you should hold the property as joint tenants or tenants in common and it is best to decide based on your personal circumstances. Generally joint tenants suit married couples and those who want equal shared ownership of the property. Tenants in common suits unmarried couples and friends who are buying a property together, where the owners have contributed unequal amounts to the purchase price or where you wish to leave your share of the property in your will. The option is entirely dependent on your personal choice.