Joint Ownership of Property: Understanding Your Options
When two or more people purchase property together, there are two ways the property can be owned:
Joint Tenants
With this option, you and your co-owner(s) hold the property together as a single entity. If one person passes away, their share automatically goes to the surviving co-owner(s). This transfer happens outside of any will or intestacy rules and doesn’t form part of the deceased’s estate. This type of ownership is commonly used by married couples or civil partners.
Tenants in Common
As tenants in common, each person owns a distinct share of the property. If one of you passes away, their share will be passed on according to the terms of their will, or in line with intestacy rules if no will is in place. As co-owners, you also hold the property in trust for each other, meaning that while you may agree not to sell the property, if one of you wishes to sell, the property must be sold.
In the absence of a formal trust document, the law assumes you hold the property equally. However, if your financial arrangement is more complex, or if you want the property to be divided in a way that reflects your specific contributions or intentions, a separate trust deed can ensure your wishes are properly documented.
Examples of situations where a trust deed might be needed include:
- You’ve contributed unequally to the purchase price, or someone else has contributed but won’t be listed on the deeds.
- You have agreed that the property won’t be sold until a specific event occurs, such as a third party moving out or passing away.
- You and your co-owner are not married or in a civil partnership, and you want to ensure your individual interests are protected.
In cases like these, a trust deed can help ensure that your intentions are clearly recorded, and any legal assumptions are varied. We can help you prepare a trust deed tailored to your specific circumstances—just get in touch with us for further advice.
Wills and Estate Planning
If you own property as tenants in common, it's important to plan ahead. In the event of your death, your share of the property will pass according to your will, or under intestacy rules if no will is in place. We recommend taking the time to consider making or updating your will, so that your co-owner’s position is protected after your death.
Need More Advice?
If you're unsure which option is right for you or if your situation is more complex, we’re here to help. Call us to discuss your needs, and we’ll guide you through the process to make sure your property ownership is set up exactly as you intend.
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