Joint Tenants and Tenants in Common: What is the difference?

Joint Tenants & Tenants in Common: What is the difference?

There are many important points to consider when purchasing a property with someone else. One of the main points you should consider is how you wish to ‘hold’ the property and the implications this may bring.

There are two ways in which the ownership of the property can be held: Joint Tenants and Tenants in Common.

Joint tenants

When you purchase a property with someone else as joint tenants e.g. a partner or family member, you each jointly hold 100% of the property instead of a specific amount.

The significance of holding the property in this way is that no one person owns a separate share or interest in the property. Each of the joint owners owns the whole of the property. This means that in the event of the death of one of the owners, their share automatically transfers to the surviving owner(s). As a joint owner, you cannot leave a ‘share’ of the property in your Will.

Tenants in common

Holding the property as tenants in common means that each person owns a separate share of the property, this can be a specified percentage e.g. 50/50 or 60/40. The most common way of holding the property as tenants in common is in equal shares, 50/50.

This way of holding a property means on the death of one of the owners, their share will pass according to their Will. There is no automatic passing of the property to the surviving joint owner(s), and the share of the deceased owner passes in accordance with the remainder of that owner’s estate. It is therefore very important that you ensure you have a Will if you decide to hold the property as tenants in common.

If you have not contributed to the property equally or you do not intend that the property is owned in equal shares, we recommend that you enter into a declaration of trust to record your respective shares. A declaration of trust states what share each person owns (for example, a third or a half) though there is a presumption of equality of shares in the absence of other evidence.

If you would like further advice on the above or assistance regarding a conveyancing matter, please contact a member of our property team on 01926 422 101 or leamspa@fieldoverell.com