When buying a property with someone else—be it a partner, relative, or friend—you’ll likely come across two key terms: Joint Tenants and Tenants in Common. These legal terms describe how a property is owned between multiple people and can have a big impact on inheritance, rights, and responsibilities.
At JW Wood, we believe property should be straightforward. So, here’s a jargon-free guide to help you understand the difference between these two ownership structures—and how they could affect your future.
What Is Joint Tenancy?
Joint tenancy means that all owners share equal rights to the whole property. You don’t each own a separate, defined share—together, you own the full property as one unit.
Key Features:
- Equal ownership: You each own 100% of the property together (not split 50/50 or any other ratio).
- Right of survivorship: If one owner dies, their share automatically passes to the other owner(s), regardless of what's written in a will.
- No individual shares: You can’t sell or pass on “your half” separately while still alive without changing the ownership structure.
When is it used?
Joint tenancy is ideal for:
- Couples who want the surviving partner to automatically inherit the property.
- People wanting a simple and equal ownership setup with no need for probate.
Potential Drawbacks:
- No inheritance control: You cannot leave your share to anyone else in your will. Children from a previous relationship, for example, might not inherit.
- Equal responsibility: If one co-owner gets into financial trouble, the whole property could be affected.
- Lack of flexibility: Ownership is rigid—if circumstances change, a restructure may be needed.
What Is Tenancy in Common?
In contrast, tenants in common each own a specific share of the property. These shares can be equal or unequal, depending on what you agree.
Key Features:
- Defined shares: You can split ownership 50/50, 70/30, or in any proportion.
- Control over inheritance: You can leave your share to whoever you choose in your will.
- No automatic transfer: There is no right of survivorship. When one owner passes away, their share forms part of their estate.
When is it used?
Tenancy in common is ideal for:
- People contributing different amounts to the purchase.
- Those with children from previous relationships.
- Individuals planning for inheritance or estate planning.
- Those concerned about care home fees, as only your share is considered during means testing.
Changing from Joint Tenants to Tenants in Common
If you're already listed as joint tenants but your needs change, you can switch to tenants in common by serving a Notice of Severance and registering it with the Land Registry. This might be relevant if:
- You want to update inheritance plans.
- Your relationship with a co-owner has changed.
- You want to protect your estate or make financial arrangements for children.
So, Which One is Right for You?
There’s no one-size-fits-all answer. Your choice depends on your personal circumstances, your financial goals, and your long-term intentions. For example:
Choose Joint Tenancy if:
- You want simplicity and shared ownership.
- You want the property to pass automatically to the other owner when one of you dies.
Choose Tenancy in Common if:
- You want to protect family inheritance.
- You’re investing uneven amounts.
- You need more flexibility for estate planning or care costs.
Get Professional Guidance
Before deciding, it's always wise to speak with a solicitor who can explain the full implications of each option based on your situation.
And when it comes to buying or selling a jointly owned property, choosing a trusted agent like JW Wood—gives you confidence. We’re here to handle the legal complexities, coordinate between co-owners, and ensure your transaction runs smoothly from start to finish.
Have more questions about joint ownership or planning your property journey?
Contact JW Wood today—we’re here to make property simple and stress-free.
Adapted from co-oplegalservices.co.uk and moveiq.co.uk