Buying a home is an exciting milestone, but there’s one decision that often gets left to the last minute: how will you own the property together?
The ownership structure you choose, Joint Tenants or Tenants in Common, can have a big impact on your future, from inheritance rights to financial security.
Janet Jones, Head of Residential Property at Jackson Lees, explains how understanding these options now, can save you stress later.
What Are Joint Tenants and Tenants in Common?
When two or more people buy a property in England or Wales, you must decide how to hold the beneficial legal title:
- Joint Tenants
You both own the whole property equally. If one of you passes away, the other automatically inherits the entire home, regardless of what your Will says. This is common for married couples or civil partners who want simplicity and security. - Tenants in Common
Each person owns a specific share of the property, which can be equal or reflect different contributions. Your share does not automatically pass to the other owner. You can leave it to someone else in your Will. This option is popular with unmarried couples, friends, or business partners.
Why Does Ownership Structure Matter?
Choosing the right structure isn’t just a legal formality, it affects your financial and personal future:
- Inheritance Planning: Do you want your share to go to your partner or your children?
- Relationship Changes: What happens if you separate or divorce?
- Unequal Contributions: Have you paid more towards the deposit or mortgage purchase price?
How Do You Decide Which Is Right for You?
Ask yourself these key questions:
- Do we want automatic inheritance if one of us dies?
- Do we need flexibility to leave our share to someone else?
- Are we contributing different amounts to the purchase price?
If you’re unsure, speak to a solicitor conveyancer early in the buying process. They can help you weigh up the pros and cons and draft a Declaration of Trust if you choose Tenants in Common.
Can You Change Ownership Structure Later?
Yes.
You can switch from Joint Tenants to Tenants in Common (or vice versa) by updating your trust deed and notifying HM Land Registry. There’s no fee for this, but legal advice is strongly recommended to avoid complications.
Need Expert Advice for Your Property Purchase?
At Jackson Lees Group, we make complex legal decisions simple. Our property law specialists can guide you through ownership options, protect your interests, and ensure your future plans are secure.
Ready to buy your dream home? Contact our team today for clear, friendly advice. Please give us a call, request a callback or make an enquiry to find out how we can help.