When you buy property with someone else in England and Wales, one of the first—and most important—decisions you’ll face is how you want to legally own it. This choice, between joint tenants and tenants in common, can have a lasting impact on what happens to your share of the property if you pass away, how you plan your estate, and even how you manage the property during your lifetime. Many people don’t realise the full implications until it’s too late, so it’s worth taking the time to understand the differences and potential pitfalls.

Joint Tenants

With joint tenancy, both owners are treated as owning the whole property together. There are no separate shares, and you each have equal rights to the entire home. The most significant feature is the right of survivorship: if one of you dies, the property automatically passes to the surviving owner, regardless of what any will might say. This arrangement is especially common for married couples or civil partners who want the property to go directly to the other person.

However, joint tenancy can create complications if your circumstances change. For example, if you separate or divorce, or if you want your share to go to children from a previous relationship, joint tenancy may not be the best fit. It’s also important to note that creditors of either owner can potentially claim against the whole property, not just a share.

Tenants in Common

If you choose to be tenants in common, each person owns a defined share of the property. These shares can be equal or reflect different contributions—such as one person paying a larger deposit. There’s no right of survivorship, so if you die, your share will pass according to your will or, if you don’t have one, under the rules of intestacy. This option offers flexibility, allowing you to leave your share to anyone you choose, such as children from a previous relationship, friends, or charities.

Tenants in common is often chosen by unmarried couples, friends, or family members who have contributed unequally. It’s also a popular choice for those who want to protect their share for future generations or for tax planning reasons. However, it’s essential to have a clear written agreement (such as a declaration of trust) setting out each person’s share and responsibilities, to avoid disputes later.

Key Differences at a Glance

• Ownership: Joint tenants each own 100% together; tenants in common have specific shares.

• Inheritance: With joint tenants, the survivor automatically inherits; with tenants in common, your share goes according to your will.

• Selling: Joint tenants must agree to sell; tenants in common can sell or transfer their own share, though in practice this can be complicated if the other owner does not agree.

Common Ambiguities and Pitfalls

Severing a Joint Tenancy

If you start as joint tenants but later want to own as tenants in common, you can “sever the joint tenancy.” This can be done without the other owner’s consent, but you must follow the correct legal steps—usually by serving a written notice of severance and registering the change with HM Land Registry. Failing to do this properly can lead to disputes or unintended consequences if one owner dies.

What Happens If There’s No Will?

If you are tenants in common and die without a will, your share will pass under the rules of intestacy, which may not reflect your wishes. This can cause problems for blended families or co-owners who are not married or related. Making a will is essential to ensure your share goes where you want.

Unequal Contributions

If you contribute unequally to the purchase price or mortgage, but don’t record this in writing, the law may presume equal shares. A declaration of trust can clarify each person’s entitlement and help avoid disputes if the property is sold or one owner wants to leave.

Selling or Mortgaging the Property

Joint tenants must act together to sell or mortgage the property. Tenants in common can, in theory, sell their share, but in practice, this is rarely straightforward—most buyers want the whole property, not just a share. If there’s a dispute, either party can apply to court for an order for sale, but this can be costly and stressful.

Practical Tips

• Decide on the ownership type before you buy, and make sure it’s recorded correctly at the Land Registry.

• If you’re tenants in common, make a will and consider a declaration of trust.

• Review your ownership arrangements if your circumstances change—such as marriage, divorce, or having children.

• Keep communication open with your co-owner to avoid misunderstandings.

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Disclaimer: This blog post provides general information for educational purposes only. It is not legal advice. Outcomes can vary based on your personal circumstances.