Joint tenants vs tenants in common: Why does it matter?

Buying a house can be exciting, however, deciding what legal protection is best suited to your circumstances can seem less so.

Although it may feel like being together forever is an everlasting love story, couples need to consider the legal side of when there is a separation, or simply where there is a difference between what each person wants.

The options should be carefully considered, as doing so can avoid legal and financial complications in the future.

The differences between joint tenants and tenants in common

1. Joint tenants

A joint tenancy is where both parties own the property in equal shares. The agreement is often used for first-time buyers and couples; domestic bliss can seem permanent.

Main features of joint tenants:

• Each party has equal rights to the whole property
• The other owner(s) automatically own the property if one party dies (known as the right of survivorship)
• Your share of the property cannot be passed on in a will

2. Tenants in common

Tenants in common can provide more flexibility when it comes to ownership of the property, and as such, can be more appealing.

For example, with help from a solicitor, the couple can decide on what percentage of the property is theirs.

Unlike with joint tenants, ownership does not have to be 50/50.

Main features of tenants in common:

• Each party can own different shares of the property. This can be fixed from the start or altered in the future
• Parties do not automatically inherit the others’ shares of the property (no right of survivorship)
• Shares can be left in a will This could be a 35%-65% split of the property's purchase price, as opposed to 50% each with joint tenants.

Being tenants in common may prevent certain legal issues if the parties decide to separate, as in theory, both parties would already have agreed upon the proportion of the property that they own.

Should you choose to be joint tenants or tenants in common?

Compared to tenants in common, being joint tenants tends to be the option for many couples, as everything can be equally split between both parties.

However, where one party has contributed more, tenants in common can better reflect how the parties wish to split ownership of the property.

In order to avoid disputes over ownership if parties decide to part ways, it's best to contact a solicitor for specific advice.

Legal advice regarding tenants in common or joint tenants

For help with a legal issue surrounding joint tenants and tenants in common, or any other legal advice relating to property law, get in touch with the team at Carlsons Solicitors.