Buying a House? Joint Tenants or Tenants in Common?

In his latest blog, Wills & Probate Solicitor Keith Baldock-Grimes debates ‘joint tenants’ or ‘tenants in common’……

When buying a house with another person perhaps a spouse, civil partner, partner or friend, your legal adviser will always ask you how you wish to own the property. The options, in legal terms, will be to own either as joint tenants, or tenants in common.

Joint Tenants Or Tenants In Common – What’s The Difference?

Many people are not aware of the difference between the two options but if one of you dies then the choice of ownership is crucial.

On death, if you own as joint tenants, then the property will pass automatically, through the right of survivorship, to the surviving co-owner. This will even override the provisions of any Will you may have made.

A tenancy in common on the other hand means that you each have distinct shares in the property and upon death your individual shares will pass in accordance with the terms of your Will, or if you don’t have a Will, then your share will pass to relatives, in accordance with entitlement under the rules of intestacy.

Choosing A Tenancy In Common

People often use a tenancy in common when they are each making different financial contributions to the purchase price and they want to hold the property in unequal shares. If you choose to own as tenants in common then it is vital that you consider making a Will and decide who you want to receive your share in the property in the event of your death.

Couples who each have children from previous relationships might wish to protect their share by allowing the surviving co-owner to occupy the property after their death but leaving their share on trust for their children or their own family.

At the start of their relationship many couples choose to own as beneficial joint tenants as they simply want their shares to pass to each other. As people grow older, however, and care fees become an issue, many people consider changing to a tenancy in common. They can then ensure that the survivor has the use of their share of the property but by placing it in trust, rather than giving it to them outright, half of the property can be protected from care fees should the survivor later require residential care.

This can be achieved through carefully drafted provisions in your Will and it is a relatively simple procedure to convert a beneficial joint tenancy into a tenancy in common.

What If We Aren’t Married?

If you are purchasing a property as cohabitees, then you cannot rely on the intestacy provisions to pass on your share to each other. This is actually also true for married couples, given the limits on the amount that the surviving spouse receives under an intestacy.

Unmarried partners have no automatic rights in the event that one of you dies without a valid Will. This can result in your property being co-owned by your partner and potentially your parents, siblings or even more distant relatives. If your family demand their share then your partner could lose their home with only half the proceeds to buy somewhere new.

It Is Worth The Cost?

Buying your property is an exciting time and the last thing you probably want to think about is dying and also getting more legal advice but, hopefully, the above will highlight why considering a Will and the conveyancing transaction together is important. It will be money well spent.

If you are buying a property and you would like to discuss your Will, please contact me on 01283 214231 or by email at k.baldock-grimes@timms-law.com.

Keith Baldock-Grimes
June 2021