Tenants in Common vs Joint Tenants: Understanding the Differences
5 minute read
Date Published - April 2nd 2025
5 minute read
Date Published - April 2nd 2025
Buying property together is an exciting step, whether you're doing it with a partner, friend, or business associate. However, it’s important to address some legal details early to avoid complications later.
When purchasing a property, you’ll have two options in terms of legal ownership - joint tenants or tenants in common. The two are quite different and your decision will affect how you manage and inherit the property in the future.
Joint tenancy is when two or more people own a property equally, regardless of how much each person pays towards the mortgage payments or the initial deposit.
Legally, joint tenants are considered a single entity. This means you share one mortgage, and any decision to sell the property must be made together.
Joint tenancy is usually the preferred option for those in a committed relationship, whether married or cohabiting, who want equal rights to the property and for their partner to inherit it when they pass away.
Tenancy in common allows two or more people to own property together, giving each person the opportunity to own different shares. This means three people might own the property, but have split their shares 50%, 30% and 20%.
With tenants in common, each owner can manage their share independently, often making decisions about the property more complex. For example, one owner can sell their share without needing the consent of the others. However, all owners must agree to sell the entire property.
This arrangement is often preferred by business partners, friends, or relatives who want flexibility in managing their shares.
Understanding the differences and similarities between joint tenancy and tenants in common is incredibly important when making your decision. To help clarify on specific matters, here’s a comparison:
Joint Tenants: All joint tenants have equal rights to the entire property.
Tenants in Common: Each tenant can own different shares of the property.
Joint Tenants: All owners must agree to sell the property.
Tenants in Common: All owners must agree to sell the property.
Joint Tenants: Your share automatically goes to the other owner(s) if you pass away.
Tenants in Common: You can leave your share to anyone in your Will.
Joint Tenants: A joint mortgage is required.
Tenants in Common: Separate mortgages are possible but more challenging to obtain.
With a joint tenancy, due to the right of survivorship, the deceased’s share will automatically transfer to the surviving owner(s) when they pass away. This ensures the property remains with the existing joint tenants, bypassing the probate process.
When a tenant in common passes away, their share of the property will be inherited according to their Will (or, if there's no Will, through the rules of intestacy).
This means a new co-owner can potentially be introduced to the property’s ownership if they choose for a family member, child or friend to inherit their share.
Choosing between a joint tenancy and tenancy in common depends on your situation, relationship with co-owners, and future plans. Here are some things to consider:
Joint Tenancy: This is often ideal for couples or close relatives who want the property to automatically pass to the surviving owner without the need for probate. It simplifies inheritance and ensures the property stays within the immediate circle of co-owners.
Tenancy in Common: This option is better for business partners, friends, or those who want the flexibility to leave their share to someone else in their Will. It allows each owner to decide who inherits their share, making it suitable for those with distinct future plans or individual beneficiaries in mind.
For unmarried couples, or those cohabiting, how you own property together can significantly impact what happens if one partner passes away.
In the UK, unmarried couples have no rights to their partner’s assets when they pass away. However, choosing to be joint tenants means that if one partner dies, the other will automatically inherit the entire property without relying on a Will - bypassing probate.
On the other hand, if you choose to be tenants in common, each partner owns a specific share of the property. If one partner dies, their share can be passed to their heirs according to their Will. This could complicate things for the surviving partner if the other didn’t leave a Will, and it also means they could end up sharing ownership with the deceased partner's family members.
Discussing your situation with a specialist conveyancing solicitor can help you understand the implications and choose which option is best for you.
Understanding the tax implications of joint tenancy and tenancy in common is crucial when deciding which option is best for you.
If one tenant dies, their share automatically goes to the surviving tenant(s) and is usually exempt from inheritance tax if it goes to a spouse or civil partner. However, if the share passes to another beneficiary, half the property's value is added to the deceased's estate for inheritance tax purposes.
Each owner’s share can be left to heirs in a will, and this share might be subject to inheritance tax if it exceeds the exemption threshold. The value of the deceased’s share is added to their estate, and inheritance tax will be due if the estate’s value exceeds the tax-free allowance.
While GloverPriest can advise on the legal aspects of joint tenancies and tenancies in common, it's best to consult a tax advisor to fully understand your tax liabilities.
Switching from joint tenants to tenants in common, known as "severance," comes with some costs. These usually include legal fees for preparing and processing the necessary documents. You'll likely need a solicitor to handle the paperwork to ensure everything is done correctly.
Additionally, there might be Land Registry fees to update the property title. The total cost can vary depending on the complexity of the property and the solicitor's fees. Speaking with a conveyancing solicitor will give you a clearer idea of the exact costs involved and ensure the process goes smoothly.
At GloverPriest, our experienced conveyancing solicitors are here to guide you through the property ownership process, whether you're choosing joint tenancy or tenancy in common. We provide clear, personalised advice to make sure you make informed decisions and protect your investment.
If you need assistance from one of our specialist property lawyers, we're here to support you. Contact us today by completing our online enquiry form or giving us a call.
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