Joint Tenants vs Tenants in Common: What's the difference?

When two or more people buy property together, they must decide whether to hold it as joint tenants or as tenants in common – two distinct forms of legal co-ownership that have important implications, especially on estate planning and death.

Here, we break down the differences between the two types of arrangement:

What is joint tenancy ownership?

Joint tenants are considered to own the whole property together. There are no individual shares, and the key feature is the right of survivorship: when one joint tenant dies, their interest automatically passes to the surviving co-owner(s), regardless of any Will.

This arrangement is common among couples who want a simple transfer of ownership on death.

The advantages of joint tenancy include avoiding probate and reflecting equal ownership. However, it also means a joint tenant cannot leave their share to someone else in a Will, and it may not suit situations where co-owners have contributed unequally.

What is ‘tenants in common’ ownership?

By contrast, tenants in common each own a specific share of the property, which can be equal or unequal. On death, the deceased’s share of the asset is passed on according to the owner’s Will or intestacy rules, as opposed to being automatically transferred to the other co-owner(s).

This allows more flexibility and control, and is particularly useful in family arrangements involving children from previous relationships or where co-owners are friends or investors.

However, the downsides include the need for probate, as well as the potential for disputes if the deceased’s share is inherited by an unexpected party.

Which arrangement is right for me?

Generally speaking, joint tenancy suits those seeking simplicity and shared ownership, while tenancy in common is required when there is a desire for the property to eventually be passed on to a third party, or where the property is to be subject to the provisions of the deceased’s Will.

For example, tenancy in common may be preferable when there is a trust contained in the deceased owner’s Will designed to protect the asset for the deceased’s bloodline, or to prevent the property from being used to pay the survivor’s long-term care fees.

How we can help

If you have any questions about which type of ownership arrangement is best suited to your unique situation, don’t hesitate to get in touch with friendly and experienced Wealth Protection team.

Contact us today on 03333 058375 or by email via WealthProtection@psg-law.co.uk to learn how we can help you find the right solution for your needs.