Tenants in Common vs Joint Tenants: What’s the Difference?

When buying a property with a partner, friend or family member, choosing between joint tenants and tenants in common is one of the most important decisions you’ll make. Your choice can affect inheritance, what happens if your relationship changes, and how your share of the property can be passed on.  

Joint tenants enables all owners to own the whole property together with automatic right of survivorship, while tenants in common allows each owner to own a defined share (equal or unequal) that can be left to anyone in your will.  

This comprehensive guide explains the key differences between joint tenants and tenants in common, helping you understand which option may best suit your circumstances and financial contributions. 

Whether you’re first-time buyers navigating property ownership for the first time, unmarried partners wanting to protect unequal deposits, or family members buying together, understanding the distinction between these two forms of ownership is crucial.

Quick Summary 

Joint tenants own the whole property together, with the survivor automatically inheriting the other’s share when they die. Tenants in common each own a defined share, which can be equal or unequal, and can leave their share to anyone in their will instead.

FAQs: Joint Tenants vs Tenants in Common:

Does “Tenant” Mean I’m Renting?

No, in this context, “tenant” is an old legal term meaning owner. It has nothing to do with being a tenant renting a property under a tenancy agreement and only refers to those buying their own home. 

What does it mean to own a property as joint tenants? 

If you own as joint tenants, you both have equal rights to the whole property. There are no separate shares. 

A key feature is that when one joint tenant dies, the property automatically goes to the surviving owner(s), regardless of what any will says. 

Because of this, if you hold your property as joint tenants, you don’t own a defined share that you can leave to someone else in your will. 

What does it mean to own a property as tenants in common? 

If you own as tenants in common, you each own a specified share of the property. Those shares can be equal or unequal, e.g. 50/50 or 70/30. 

If one of you dies, your share does not automatically pass to the other owner(s). Instead, it can pass to someone of your choice, as specified in your will. This could be the person you bought the property with or someone else, subject to your mortgage lender’s requirements. 

If you die without a will, your share will pass under intestacy rules. So, having a will is crucial, as the person it passes to under intestacy may not be who you’d want it to go to in reality. This is particularly crucial if you want your share to go to a partner you’re not married to, as partners who aren’t married or in a civil partnership don’t inherit under intestacy. 

What is the right of survivorship? 

The right of survivorship is the rule that applies to joint tenants: when one owner dies, their interest in the property automatically transfers to the surviving joint tenant(s). 

That transfer happens by law, not through the will. 

What are the advantages of owning as joint tenants? 

Joint tenants can be a great fit if: 

• You want the property to pass automatically to the survivor if one of you dies 
• You both see the property as a true “ours” asset with equal ownership, regardless of financial contributions 
• You prefer simplicity and don’t wish to reflect different financial contributions in ownership shares. 

What are the disadvantages of owning as joint tenants? 

Potential drawbacks to owning as joint tenants include: 

• You can’t leave your interest in the property to someone else in your will because the right of survivorship applies.  
• If your circumstances change, like separation, blended families, or future inheritance planning, joint tenancy may no longer reflect what you want. 
• If you paid different amounts towards the deposit or mortgage, joint tenancy may not match your financial reality (this is where a deed of trust and/or tenants in common often comes into the conversation). 

What are the advantages of owning as tenants in common? 

Tenants in common can be a great fit if: 

• You’ve contributed unequal deposits and want ownership to reflect that (say, 70/30). 
• You want the ability to leave your share of the property to someone else (like children, family members, or a trust) via your will. 
• You’re buying with someone who isn’t your spouse or civil partner and want clearer protection if circumstances change. 

What are the disadvantages of owning as tenants in common? 

Things to consider: 

• If you die without a will, your share of the property may have to go through probate, which can be time-consuming and costly.  
• The laws of intestacy also apply to your share of the property if you die without a will, which means your share might not pass on to the person you’d like it to go to.  
• If you don’t have a clear agreement about who owns what (and who pays what), disputes can arise later. This is where a properly drafted declaration of trust can be invaluable. 

Can you change from joint tenants to tenants in common (or vice versa)? 

Yes, you can change the way you hold property from joint tenants to tenants in common, or from tenants in common to joint tenants. Your conveyancing solicitor can help you with this. If you’re converting from joint tenants to tenants in common, you should also consider signing a Declaration of Trust which sets out who now owns which share. 

Changing the way you own your property is a legal process with potential consequences, so it’s worth getting legal advice before you do it. That way you’re well informed and can make sure the paperwork and wider planning, like wills, align properly. 

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Does the type of ownership affect what happens if we split up or want to sell? 

Yes, if you split up, the way you legally own your property can make a real difference to what happens next, how easy it is to move on, and whether disputes arise. 

If you own the property as joint tenants: 

You both own the property equally and together, regardless of who paid what. So, if you split up you both continue to own the whole property jointly until something changes. Neither of you owns a defined share, and decisions about selling, refinancing, or one person staying usually need both owners’ agreement.  

In these situations, it’s typical for one person to buy the other out, or the property is sold and the proceeds split equally. You could also apply to convert to tenants in common 

Note that, unless the joint tenancy is severed, the right of survivorship still applies. That means if one joint tenant dies before matters are resolved, the property automatically passes to the other, even if you’ve separated. 

If you own the property as tenants in common: 

Your ownership shares remain as set out in your legal document. This usually makes it easier to establish what each of you is entitled to, and having a Declaration of Trust will be key evidence for this.  

Typically, one owner buys out the other’s share or the proceeds are divided according to the recorded shares. 

Note that if one owner dies, their share will be passed onto whoever it has been left to in their will, or the rules of intestacy if there is no will, regardless of any separation. 

Dealing with what happens to the property after you split can be tricky, regardless of how you own it. To reduce the risk of a dispute, make sure you both agree on ownership type and shares before purchase, use a Declaration of Trust where contributions are different and make sure your wills are kept up to date. 

What is a Declaration of Trust? 

A Declaration of Trust, also known as a Deed of Trust or Trust Deed, is a legally-binding document recording who owns what share of the value of the home when two or more people own a home together. 

A well-drafted Declaration of Trust can set out things like each person’s ownership proportions (equal or unequal), who paid what towards the deposit or purchase price, how ongoing costs are treated (such as mortgage payments, repairs, and improvements), and what happens if one party wants to sell or buy the other out, and how the net proceeds are divided. 

Do I Need a Declaration of Trust? 

Not everyone buying a new home needs a declaration of trust, but they’re particularly useful when one person pays a larger deposit they want to ringfence if the property is sold (including a gifted deposit from family), you’re buying as tenants in common and want your shares recorded clearly (like 60/40), or you want to agree in advance how sale proceeds are split if you separate or sell.  

It’s strongly recommended for those buying as tenants in common to have a Declaration of Trust. 

Is Tenants in Common or Joint Tenants Best for First Time Buyers? 

There isn’t a single best option for all first time buyers and we can’t give legal advice in this article. The best option for you depends on whether you and your co-owner want equal or different shares in the property, as well as what you’d wish to happen to your share if you were to die. 

Many first time buyers choose tenants in common, especially if they’re unmarried partners or are buying with friends or family. This is the best option to reflect unequal deposits or other financial contributions, and allows you to choose who you’d like your share of the property to go to in your will. If you’re buying as tenants in common, you should also consider a Declaration of Trust. 

However, not all first time buyers pick this option. Many also choose joint tenants as it ensures the home automatically passes to the surviving owner if one of them dies, regardless of what a will might state. 

If you’re a first time buyer and are unsure on the best option for you, you can discuss it with your conveyancer who will be able to provide advice on your specific situation. 

Can I Own a Property with More Than One Other Person? 

Yes, both joint tenants and tenants in common can apply to three or more owners. 

Can Tenants in Common Shares Be Unequal? 

Yes, tenants in common can own in any percentage each, such as 70/30, 50/30/20 for three owners, or even 50/50, which can be a good option if you want to own the property in equal shares but would like your share to pass to someone who isn’t your co-owner when you die. 

Does a Declaration of Trust Replace a Will? 

No. A Declaration of Trust only records who owns what share and how proceeds are divided. It does not determine inheritance, so if you’re a tenant in common, you still need a will to ensure your share passes to your chosen beneficiary. 

For joint tenants, the will does not affect the property, as the right of survivorship takes precedence. 

Conclusion 

Choosing between joint tenants and tenants in common is a decision that can have real implications for your future, your finances, and what happens to your share of the property if life takes an unexpected turn. 

There’s no one-size-fits-all answer. The right choice for you depends on your relationship, your financial contributions, your plans for the future and what you’d want to happen if you or your co-owner were to pass away. What matters most is that you make an informed decision that reflects your circumstances and protects your interests. 

If you’re buying with someone who’s contributed a different amount to the deposit, if you want to make sure your share goes to specific people in your will, or if you’re simply not sure which option suits you best, it’s worth having a proper conversation with your conveyancer early on. Getting it right from the start can save a lot of stress and potential disputes down the line. 

At Setfords, our conveyancing team helps people navigate these decisions every day. We’ll talk you through the options, explain what they mean for your situation, and make sure the paperwork reflects what you actually want. We’re here to help. 

Get your free, no-obligation conveyancing quote today and let’s make sure your property ownership is set up exactly the way you need it.