Buying A House Or Flat

What is the difference between joint tenants and tenants in common?

What is the difference between joint tenants and tenants in common?

Joint tenants and tenants in common are two different ways for two people to hold a property. If it is held as joint tenants then both will own the entire property, and will each hold it on trust for the other person. If the property is held as tenants in common then each will have distinct shares, usually as a 50/50 split if there are two tenants. It is of course possible to have more than two tenants or have an unequal split.

 

The main impact of this choice is what happens if one of the tenants dies before the other. If the property is held as joint tenants then, as both own the entire property and hold it on trust, the survivor will automatically receive the deceased tenant’s share, regardless of the will. If the property is held as tenants in common then the deceased party’s share will form part of his estate and will be dealt with as per his will.  If this option is chosen then you will, in all likelihood, need to have a trust deed drawn up to protect both parties and your conveyancer should be able to point you in the right direction.

 

Joint tenancy is the most common choice for a married couple, and tenants in common is in the most frequent choice for cohabiters and groups, such as friends, who have bought a house together but do not want their share to pass automatically to the other owners. However, just because these are the most common options, this does not always mean that they are the best.

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