When two or more people own a property together, they can either own as joint tenants or tenants in common.

When buying a property as co-owners, it is important to take the time to decide how you will hold the property together. There are practical differences to each type of ownership.

What does it mean to buy as joint tenants?

Where two or more people own a property as joint tenants, they are all equally entitled to the whole of the property. For example, on the sale of the property, joint tenants are entitled to share the proceeds of the sale equally.

A fundamental characteristic of joint tenancy is the ‘right of survivorship’. This means that if one owner dies, the survivor automatically owns the whole of the property, regardless of the deceased’s will.

Nonetheless, a joint tenancy can be converted to a tenancy in common at any time. The process of doing so requires one joint owner to notify the other in writing. Agreement of the other party is not necessary. Certain situations may arise in which a joint tenancy is converted automatically, for example, where one party becomes bankrupt.

What is Tenancy in Common?

Where two or more people own as tenants in common, each person owns a defined share of the property. Each separate share forms part of their estate and will pass to that person’s beneficiaries by their will or the laws of intestacy. This may be particularly suitable for where the co-owners wish to control the devolution of their equitable interest in the property. It is important to acknowledge that a surviving joint owner has no automatic claim on the deceased share in the property. Accordingly, if the will does not make a provision for the surviving joint owner, the property may have to be sold to enable the beneficiaries to realise their interest in it.

Tenants in common may own the property in equal or unequal shares. This is often, but not always, dependent on their respective contributions to the property. For example, one party may contribute more to the deposit or to making improvements to the property.

Where two or more people own as tenants in common in unequal shares, it is essential that they sign a declaration of trust by way of recording the agreement at the time of the purchase. For example, on the sale of the property, or if the co-owners should separate, the declaration of trust will illustrate the respective interests in how the sale proceeds are to be calculated. This is a document that a solicitor will prepare on their behalf.

Solicitor for Co-Ownership Guildford and London

Taking the decision to own a property jointly can be exciting, however, the logistics involved can prove to be highly overwhelming. Therefore, seeking the appropriate advice is essential.

At Gordons Partnership, our residential property solicitors are accredited by The Law Society’s Conveyancing Quality Scheme. With this, you can be safe in the knowledge that you will receive comprehensive, reliable and professional advice.

To speak to one of our legal professionals in Guildford or London today regarding your tenancy in common or joint ownership or other residential property transaction, please call 01483 451 900 (Guildford) or 020 7421 9421 (London) or email sols@gordonsols.co.uk.

Cohabitation Agreement Solicitor

When you own a property as joint tenants or tenants in common, this might be with a partner with whom you are not married. In this case, it is wise to implement a cohabitation agreement with the support of a trusted family law solicitor.

Please click here to learn about how Gordons Partnership can support you in creating your cohabitation agreement.

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Liberty

Liberty Lawson

Paralegal