When two or more people buy a property together in England and Wales, they must choose one of two legal ownership structures: joint tenants or tenants in common. This decision affects what happens to the property if someone dies, separates, or wants to sell their share. Getting it wrong can have costly consequences.
The Two Types of Property Ownership
Quick Comparison
| Feature | Joint Tenants | Tenants in Common |
|---|---|---|
| Ownership shares | Equal (always 50/50 with two owners) | Can be any split (e.g. 60/40, 70/30) |
| Right of survivorship | Yes — property passes to survivor automatically | No — share goes according to will or intestacy |
| Can leave share in a will | No — survivorship overrides will | Yes — each owner can leave their share to anyone |
| Can sell individual share | Not directly | Yes (though mortgage lender consent needed) |
| Inheritance tax | Survivor inherits but may face IHT on the full value later | Each share assessed separately for IHT |
| Best for | Married couples, civil partners | Unmarried couples, friends, unequal contributions, tax planning |
Joint Tenancy Explained
Under a joint tenancy, both owners are treated as owning the whole property together rather than distinct shares. Neither person owns a specific percentage.
How It Works
| Aspect | Details |
|---|---|
| Ownership | Both own the whole — no individual shares |
| On death | Property passes to survivor automatically (right of survivorship) |
| Probate | Not needed for the property — survivor updates the title |
| Will | Cannot override survivorship — property is not part of the estate |
| Selling | Both owners must agree to sell |
| Mortgage | Both are jointly liable for the full amount |
Advantages
| Advantage | Explanation |
|---|---|
| Simplicity | Clean transfer on death with no legal complications |
| No probate needed | Survivor becomes sole owner by updating the Land Registry |
| Protection for partners | Surviving spouse or partner inherits automatically |
| Cost | No need for a separate declaration of trust |
Disadvantages
| Disadvantage | Explanation |
|---|---|
| No flexibility on shares | Always equal ownership, even if contributions differ |
| Cannot leave share to others | Children, family members, or charities cannot inherit your share |
| IHT exposure | Full property value may count for inheritance tax on second death |
| Cannot protect share | No way to ring-fence your half for specific beneficiaries |
Tenants in Common Explained
Under tenants in common, each owner holds a specific share of the property. These shares can be equal or unequal.
How It Works
| Aspect | Details |
|---|---|
| Ownership | Each person owns a defined share (e.g. 50/50, 60/40, 75/25) |
| On death | Share passes according to the will or rules of intestacy |
| Probate | Needed for the deceased’s share (it is part of their estate) |
| Will | Essential — without one, intestacy rules apply |
| Selling | Both owners must agree to sell the whole property, but a share can be sold independently (in theory) |
| Mortgage | Both are usually jointly liable regardless of shares |
Advantages
| Advantage | Explanation |
|---|---|
| Flexible shares | Reflect unequal financial contributions accurately |
| Estate planning | Leave your share to children, family, or others |
| IHT planning | Use trusts and wills to manage inheritance tax more effectively |
| Asset protection | Can protect your share in a trust (e.g. for care home fee planning) |
Disadvantages
| Disadvantage | Explanation |
|---|---|
| Less straightforward on death | Requires probate for the deceased’s share |
| Needs a will | Without a will, intestacy rules may not match your wishes |
| Declaration of trust recommended | Additional legal cost (£200–£500) |
| More complex | More administration and planning required |
Which Should You Choose?
Married Couples or Civil Partners
Usually: Joint Tenants
Most married couples choose joint tenancy because:
- The property automatically passes to the surviving spouse
- It is simple and does not require a will to deal with the property
- There is no inheritance tax between spouses regardless of ownership type
Consider tenants in common if:
- One partner contributed significantly more to the deposit
- Either partner has children from a previous relationship
- You want to use a trust for inheritance tax planning (e.g. a life interest trust)
- You want to protect your share against future care home fee assessments
Unmarried Couples
Usually: Tenants in Common
Unmarried couples (whether cohabiting or not) do not have automatic inheritance rights, so tenants in common is usually the better choice because:
- You can reflect unequal financial contributions
- Each person can leave their share to whoever they wish in their will
- If the relationship breaks down, ownership shares are clearly defined
- Cohabiting partners do not inherit under intestacy rules without a will
Friends Buying Together
Always: Tenants in Common
Friends buying a property together should always use tenants in common with a detailed declaration of trust covering:
- Ownership shares
- How mortgage payments are split
- What happens if one person wants to sell
- How running costs are divided
- What happens if one person cannot pay their share
Investment Properties or Business Partners
Usually: Tenants in Common
Tenants in common is typically better for investment partners because:
- Shares can reflect different financial contributions
- Each partner can plan their tax and inheritance separately
- Partners can sell their share independently (subject to any agreement)
Severing a Joint Tenancy
If you are currently joint tenants and want to change to tenants in common, this is called severing the tenancy. Either owner can do this without the other’s consent.
How to Sever
| Step | Action |
|---|---|
| 1 | Complete a Form SEV (available from the Land Registry) |
| 2 | Serve written notice on the other joint tenant(s) |
| 3 | Send Form SEV and a copy of the notice to the Land Registry |
| 4 | Land Registry updates the title — a restriction is added |
Key Points
| Point | Details |
|---|---|
| Cost | Free at the Land Registry |
| Consent needed | No — either owner can sever unilaterally |
| Notice | Must be served in writing on the other owner |
| Effect | Creates equal shares (50/50 with two owners) unless agreed otherwise |
| Reversible | No — you cannot revert to joint tenancy without both owners agreeing |
| When it takes effect | From the date notice is served |
People commonly sever joint tenancies when:
- Separating or divorcing
- Planning for care home fees (to protect half the property)
- Setting up a trust for inheritance tax planning
- One owner becomes seriously ill
Declaration of Trust
If you are tenants in common, a declaration of trust (also called a deed of trust) is a legal document that records:
| What it covers | Example |
|---|---|
| Ownership shares | A owns 60%, B owns 40% |
| Deposit contributions | A paid £30,000, B paid £20,000 |
| Mortgage responsibility | Split equally or in proportion to shares |
| Running costs | How bills and maintenance are divided |
| If one person wants to sell | Process, timelines, and right of first refusal |
| Improvements | How renovations and their costs affect shares |
A solicitor can draw up a declaration of trust for £200–£500. This is strongly recommended for any tenants in common arrangement, especially when contributions are unequal.
Inheritance Tax Implications
| Scenario | Joint Tenants | Tenants in Common |
|---|---|---|
| Spouse dies | No IHT (spouse exemption) | No IHT (spouse exemption) |
| Unmarried partner dies | IHT potentially due on deceased’s share | IHT potentially due on deceased’s share |
| Second spouse dies | Full property value in estate for IHT | Only the deceased’s share counted |
| With a trust | Cannot use trust (survivorship applies) | Share can be placed in trust to reduce IHT |
The IHT nil-rate band is £325,000 and the residence nil-rate band adds up to £175,000 for properties passed to direct descendants. For estates above these thresholds, tenants in common with a trust can be more tax-efficient.
Related: Inheritance Tax Guide
Scotland and Northern Ireland
This guide covers England and Wales. Scotland has a different system:
| Jurisdiction | Ownership types |
|---|---|
| England & Wales | Joint tenants or tenants in common |
| Scotland | Common ownership (no survivorship by default) — similar to tenants in common. Survivorship clauses can be added. |
| Northern Ireland | Joint tenants or tenants in common (similar to England & Wales) |
Summary
| Situation | Recommended ownership |
|---|---|
| Married, no complications | Joint tenants |
| Married, IHT planning | Tenants in common with trust |
| Married, second marriage with children | Tenants in common |
| Unmarried couple | Tenants in common |
| Friends buying together | Tenants in common with declaration of trust |
| Unequal deposit contributions | Tenants in common |
| Investment partners | Tenants in common |
Related guides:
- Buying and Selling Property UK 2026 — The Complete Process Guide
- Joint Mortgage Guide
- Buying with a Partner Guide
- Wills and Estate Planning
- Inheritance Tax Guide
aliases:
- /mortgages/first-time-buyers/joint-tenants-vs-tenants-in-common/
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