Joint Property Ownership: Tenants in Common vs Joint Tenants

The main purpose of a will is to ensure that your wishes are met when you pass away. However, depending on the plans you have in place, there are certain instances where your will might be overridden. For example, this would apply for certain rules regarding jointly owned property, depending on whether this was purchased as joint tenants or tenants in common.

Joint tenants have equal rights to the property, meaning each tenant owns the whole property. Therefore, if one of the co-owners dies, the survivor will automatically inherit the deceased’s share, regardless of what their will or Intestacy Rules say.

Different to joint tenants, with tenants in common the ‘Rule of Survivorship’ does not apply, and if one of the co-owners dies then the provisions of their will (or if there is no will, the Rules of Intestacy) will determine what happens to their share. It is possible for the parties to own unequal shares of the property, but typically we find that it is often a 50:50 split.

How you own your home can also impact your financial future further where care fees are concerned. For example, under joint tenancy, a Local Authority may require you to sell your home to help meet the cost of care fees. However, with tenants in common, there are ways to protect your property from this via your will using trusts. Using a property protection trust could mean that the surviving partner does not own the whole property and therefore it would not then count towards their financial assets and then be forced to sell.

If you do not know which option applies to you, a will writing company can help you with this. I recently referred a client to one of our will writing connections who found that their home ownership was not even registered with the Land Registry, which is concerning. However, these experts were able to rectify this and provide the clarity my client needed.

It is possible to change your property ownership from joint tenants to tenants in common – known under the legal term of ‘severance’. Whilst it is possible to enact this yourself, we would advise seeking the help of a will specialist to ensure that you are making fully informed decisions based on your individual circumstances.

If you would like any support with this, please do not hesitate to get in touch with our Independent Financial Advisers on 0117 450 1300 and we can introduce you to one of our reputable connections if required.