Joint property ownership

Joint tenancy and tenancy in common are types of co-ownership on a property. We’ll take you through what each one means, so you can fully understand and make an informed decision that works for everyone, whether you’re buying as a couple, with friends or with family.

In this article:

What is joint tenancy?

In joint tenancy, ownership of a property is equal. If one party wants to sell, the other must agree to buy them out, or for the property to be sold. When one person passes away, the other joint tenant assumes full ownership – known as the rule of survivorship. Buying a house as joint tenants is a popular option for married or co-habiting couples.

Find out more about the process of buying a house.

What is tenancy in common?

Tenancy in common means each person owns a separate share of the property. These don’t have to be equal in size, so one person could own 75% and the other 25%, for example. Up to four people can be legal owners with tenancy in common.

Find out more about buying a house with a friend.

What’s the difference between joint tenants and tenants in common?

It may seem complicated, but we’ll break it down so you can understand the differences.

Joint tenants:

Tenants in common:

What is best, joint tenancy or tenants in common?

Which type of ownership is best, depends on your needs. If you’re buying as a couple, joint tenancy is a popular choice as it simplifies things if one partner dies – the other automatically inherits the property, which avoids probate and inheritance tax issues. This mean your share in the property is secure, however you can’t choose to leave your share to someone else.

If you'd like the option to leave it to someone else, then you should consider tenancy in common. Do bear in mind that leaving your share to someone else could cause disputes and your spouse/partner may be forced out of the home.

If one person is contributing more to the deposit, for example, and you want this reflected in the ownership, tenancy in common is the better option.

One of the disadvantages of tenants in common is that it’s less straightforward. It’s advised that you get a Deed of Trust to confirm your share and what will happen if the property is sold or bought out. This will incur an additional solicitor’s fee; but it makes it simpler if you want to sell.

You can also create a Deed of Trust or Cohabitation Agreement with a joint tenancy if you want to lay out the legal rights and financial interest of co-owners in the event of a separation.

Changing your type of ownership

Find out how to change the type of ownership of your property:

Changing from joint tenants to tenants in common:

The main reason for changing from joint tenants to tenants in common, would be if you wanted to leave your share of the property to another person. This is common for those that separate or divorce, or home owners that want to leave their shares of a property to a Trust.

To change ownership you just need to complete form SEV and send it, along with supporting documents, to HM Land Registry’s Citizen Centre. If one party hasn’t agreed to changing the ownership, you’ll need to serve them written notice, as well as filling in the form.

Changing from tenants in common to joint tenants:

The main reason for changing from tenants in common to joint tenants is if you get married and want equal rights to the whole property

To change ownership you just need to update your deed of trust, complete a RX3 form and send it, along with supporting documents, to HM Land Registry’s Citizen Centre.

Changing from tenants in common to joint tenants is more complex and less common, therefore it's likely you'll need to instruct a conveyancer to help. Use our online calculator to get a quote or contact one of our helpful Move Specialists for more information.