The difference between Joint Tenants and Tenants in Common
This article was written for and published as original content in the East Anglian Daily Times property section.
When you buy a property in joint names, your Solicitor will ask how you wish to hold the equity in the property. The two choices are Joint Tenants and Tenants in Common.
Where you hold as Joint Tenants, when one person dies, ownership of the property passes in its’ entirety to any co-owners of the property automatically. This means that the house or flat that you own does not pass to your Estate on death and the surviving co-owner will be able to sell it without any restrictions.
Where you hold as Tenants in Common, each owner has a defined share in the property and that share does not pass to any co-owner automatically on death and, instead, it passes in whatever way you specify in your Will.
This means that if your circumstances are slightly more complex, that you may want to consider being Tenants in Common. Examples of the types of scenario where this arises are below:-
- Some couples put in unequal amounts when they buy and so they want to ensure that this is reflected - there may be an unequal shareholding with, for example, one holding 60% of the equity and the other 40%;
- Couples may be on a second relationship and each have children or other dependants who they want their share to go to in the event of their death. In other words, they want to live together, but they want their Estate to go to their children on death;
- Older couples who wish to split their shares in order to protect against their half of the equity being eaten up in Care Home Fees for the surviving owner; and
- Where there is a “silent owner”, i.e. someone whose name does not appear on the deeds. This might be a parent contributing part of the money or the property may be owned by parents on behalf of a child who is not mentally capable of dealing with their own affairs.
You should always discuss with your Solicitor your full circumstances so that they can advise as to which of the options works best for you.
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