If two or more people own a property together, it can be on either a joint tenants or tenants in common basis. These two ways of sharing the ownership of a home have important implications for how the property will be dealt with when one of the owners dies.
Joint tenants
A joint tenancy is a common arrangement for married couples and long-term partners who own a home together. With a joint tenancy, each person has an equal right to the whole property; therefore, if one partner dies, their share will automatically pass to the surviving person. This is known as the right of survivorship.
If a married couple owns a house as joint tenants and one spouse dies, for example, the surviving spouse becomes the sole owner of the property. The share of the deceased spouse doesn’t become part of their estate and cannot be left to anyone else in their will
Joint tenants have equal rights to the property and cannot sell or mortgage their share without the agreement of the other owner. If you need help with joint tenancy agreements or a declaration of trust, a wide range of UK law firms and solicitors can provide help and advice.
Tenants in common
Having a tenants in common agreement is a more flexible arrangement, as it allows the owners to have different-sized shares in the property. Each owner has a defined share, which can be an equal 50/50 split or an unequal split such as 70/30.
Unlike with a joint tenancy, there is no automatic right of survivorship with a tenants in common agreement; therefore, when one tenant dies, their share does not automatically pass to the other owner. Instead, it becomes part of their estate and can be passed on according to their will. If there is no will, the share will be distributed according to the rules of intestacy. Putting a declaration of trust in place can help mitigate these issues if you have a tenants in common agreement.
