1. MoneySavingExpert.com
  2. Mortgages
Skip to content of guide

In this guide

MSE weekly email

FREE weekly MoneySaving email

For all the latest deals, guides and loopholes simply sign up today – it's spam-free!

FAQs Privacy Past Emails Unsubscribe

Owning a property with someone else – your rights

It'll depend on whether you're 'joint tenants' or 'tenants in common'

Kit Sproson
Kit Sproson | Edited by Amy Roberts and Hannah McEwen
Updated 8 October 2024

If you're buying a property with somebody else, one of the most important things you'll need to decide is whether to own it as 'joint tenants' or 'tenants in common'. This is something you should carefully consider – as the choice can have a big impact on your future finances and security. 

Skip to content of guide

In this guide

This guide is specifically about the property system in England and Wales.

How you own a property impacts your rights to it

2020580930

If you're buying a property with another person or other people, regardless of who you're buying with – be that a spouse, partner, sibling or friend – one of the biggest decisions is how to own it.

You need to consider this very carefully, as the decision will have a fundamental impact on your rights to the property and each owner's financial security. It will determine among other things:

  • Who owns how much of the property
  • What happens if things go wrong (such as a breakdown in your relationship)
  • What happens if one of you dies
  • Whether the property can be sold if you don't all agree
  • Whether you'll need a 'deed of trust'
  • What happens if one of you contributes more to the deposit or mortgage

Essentially, you will have the choice between owning your property as joint tenants or as tenants in common. This guide explains the differences between the two, so hopefully you'll be able to make an informed decision. We've also got a table which summarises the differences at a glance.

Note. In England and Wales, up to four people can legally own a property together.

Joint tenants have equal rights to the whole property

1810803850

Owning a property together as joint tenants is what married/cohabiting couples typically opt for. One reason is because joint tenants have an equal right to the whole property, regardless of whether one of you:

  • Contributes more towards the deposit for the property
  • Pays more towards the mortgage
  • Moves out of the property (or even lived there in the first place)

In other words, there is an equal level of security for each joint tenant, as you both legally own the whole property (there's no 'I own this share, you own that share').

This can be particularly appealing where you're not the main earner in the household (for example, if you're a stay-at-home-parent). It doesn't matter how much money you are bringing into the household, as long as you both agree to sell the property you will get your equal share if that situation arises. 

It might also appeal if you're not married or civil partnered to the other joint owner, as in the event of a split, cohabiting couples generally have fewer legal rights than married couples (meaning there's a bigger chance of one of you losing out financially).

Being joint tenants means there are clear rules about what happens in the event one of you were to die, or where you split up and want to sell the property. 

What happens to the property if I split with my partner?

While not a pleasant thought (especially during the excitement of first buying the property), your status as joint tenants can have a big impact on what happens if there's a breakdown in your relationship and you decide to sell the property you own together.

Remember, as joint tenants each owner has an equal right to the whole property...

So if you were to split up in the future, this means if you sold the property the proceeds generated would be shared evenly (minus the value of the outstanding mortgage). In other words, you share in any loss or gain made on the property.

For example...Let's say your home is sold for £300,000. If there's £200,000 of mortgage still to repay, that would mean £100,000 left over to divide between you, so £50,000 each (or £33,000 if there are three joint tenants, £25,000 if four).

You need the agreement of each joint owner in order to sell a property owned as joint tenants. If you can't agree, or you can but don't want to divide the proceeds evenly and are unable to find a compromise – maybe one of you believes they deserve a greater share – you'll be faced with staying put or seeking legal advice.

What happens to the property if one of us dies?

As joint tenants, if one of you were to die then ownership of the property would pass automatically and in full to the survivor.

Known as the 'right of survivorship', this legal principle applies regardless of whether you and the other joint owner:

  • Are married or cohabiting
  • Have kids together
  • Are siblings/friends
  • Have wills in place

In other words, the right of survivorship supersedes all of the above.

Joint tenants therefore provides reassurance to homeowners who know they'd definitely want ownership to pass to the surviving joint owner.

Despite the above, bear in mind inheritance tax may be due if you and the joint owner aren't married or in a civil partnership at the time of death – one of the reasons some cohabiting couples who own a property together decide to get married.

IMPORTANT: While a will doesn't impact what happens to your property if you own it as joint tenants, it's still important to have one written so you can explain what should happen to your other assets, belongings and savings. See our Cheap and free wills guide for more info on how to write a will.

Tenants in common own a specified share of the property

2460005291
Owning a property together as tenants in common is more typical of people who are friends, siblings, business associates, etc. In other words, those who aren't romantically involved (though cohabiting and married couples can be tenants in common too if they choose).
 

Here, each person owns a specific sized share of the property. These don't have to be split evenly – shares could be divided 60-40, 75-25, for example.

Tenants in common might be a preferable arrangement if one of you plans to contribute more towards the deposit or mortgage and you want to ensure each owner 'gets out what they put in' if the property is later sold. Hence why you might opt for a 60-40 split over a 50-50 split.

If you choose tenants in common, it's important to draw up a deed of trust. A deed spells out the size of share each owner has – otherwise it'll be assumed the split is 50-50 (which can cause legal issues). The deed can also be used to spell out what happens if there is a breakdown in your relationship, or where one of you wants to sell, but the other doesn't.

Quick question:

  • How exactly does a deed of trust work?

    A deed of trust is a legally binding agreement which tenants in common can draw up to clarify some, or all, of the following:

    • The size of each owner's share in the property (for example, 60-40)
    • What happens if one joint owner decides they want to sell up
    • What happens if there's a breakdown in your relationship
    • What happens if one joint owner can't afford the mortgage

    You might also consider a deed of trust if:

    • You want to ensure each owner 'gets out what you put it' – for example, if one person plans to contribute more to the deposit and/or mortgage
    • A third party (such as a parent) has contributed to the property purchase and they want that contribution safeguarded
    • Somebody plans to contribute towards the mortgage but won't own the property and wants that contribution reflected
    • It's likely one of you will contribute more money to the property at a later date – for example, for a new roof or kitchen – and you'd want this reflected
    • It's likely one of you will contribute more towards bills and utilities and you'd want this reflected

    Essentially, you can put almost anything in a deed of trust.

    Ideally, it's best to draw up a deed of trust when you purchase a property. However, you can make a deed at any time during your ownership. It's also advisable to draw up a new deed of trust (or amend the existing one) if your circumstances change.

    Typically, the cost of a deed starts from around £100, but it can be significantly more than this (sometimes £100s). It normally works out cheaper to use your conveyancing solicitor who you have assigned to help purchase the property to draw up a deed than appoint a solicitor specifically for the purpose – so its sensible to ask your conveyancing solicitor for a quote and use this as a benchmark if you decide to go elsewhere.

    IMPORTANT: Read carefully what's written in a deed of trust before signing it. You don't want to end up contractually bound to a 90-10 arrangement in your joint owner's favour if you're not happy with this – otherwise you face paying £1,000s in legal fees to claw back your 'interest' in the property.

What happens to the property if I split with my partner?

In contrast to joint tenants – where proceeds from a sale would be split evenly – if tenants in common split up then what happens to the property can be more complicated.

Provided you've got a deed of trust in place and it specifies the size of each owner's share in the property, proceeds generated from the sale would be divided based on this (minus the value of the outstanding mortgage) – for example, 70/30, 60/40. Where there is no deed of trust, it's assumed you have equally sized shares.

For example...Let's say your home is sold for £300,000 and you owned it on a 70/30 basis. If there's £200,000 of mortgage still to repay, that would mean £100,000 left over, with £70,000 of that going to one of you and the remaining £30,000 to the other.

If one of you has contributed more to the deposit, mortgage, bills or upkeep of the property and the deed of trust states this will be taken into account then this should also be reflected when dividing up the sales proceeds.

Even if one of you doesn't want to sell, if the deed of trust states that you only need one owner's agreement to sell the property, this should mean it'll be easier to force a sale (compared to joint tenants, where you'd need the agreement of each owner).

If you wish to dispute any of the arrangements set out in the deed of trust you'll need to seek legal advice.

What happens to the property if one of us dies?

With tenants in common, if one of you dies the deceased's share of the property does not automatically pass to the survivor (a key difference to joint tenants). Rather, what happens depends on whether the deceased had a will or not.

If you have a will and it states who should inherit your share, the share will pass to that named beneficiary. But if you don't have a will – or do, but it doesn't state who should inherit – the laws of intestacy determine who gets your share.

In other words, if you own a property with your partner or spouse as tenants in common then your share will not necessarily pass to them unless you've got a will stating this should happen. In fact, if you're not married or civil partnered then the chances of your partner inheriting without a will are slim.

Where your partner or spouse doesn't inherit, this could cause a barrier to them staying in the property. For example, in the scenario the person who inherits your share decides they want the property to be sold, but your partner/spouse wants to continue living there.

IMPORTANT: See our Cheap and free wills guide for full details about the ways to get your will written.

What if we have children?

Where there are children involved when you buy a property with a partner or spouse, this can add an extra layer of importance to the choice between whether you choose to become joint tenants or tenants in common.

If you share children with your partner and you'd prefer your kids to remain in the family home in the event you split up, this is a reason to consider owning your home as joint tenants as technically both parents would need to agree before the property could be sold – making a forced sale unlikely.

Realistically though, whether or not you'd be able to stay in the family home would depend on other factors too, such as:

  • Your individual financial circumstances
  • Where you live
  • Whether you're married/in a civil partnership, or simply living together
  • Whether you can afford to 'buy out' your partner.

Where you have children from a past relationship who you'd like to inherit the property instead, you might consider owning with your partner as tenants in common (and naming your kids as the beneficiaries in your will). But this might cause its own issues – for example, if your children and partner can't agree on what to do with the property after you die.

As you can see, this can be a complicated topic and there's not necessarily a perfect solution to any scenario. If you want to explore the options in further detail, you should seek legal advice.

Wondering what happens to a mortgage if you and your partner separate? See our Joint mortgage separating guide.

Joint tenants vs tenants in common: differences at a glance

Joint tenants vs tenants in common

  JOINT TENANTS TENANTS IN COMMON
Am I entitled to the whole property? Yes No – each owner has a specific share
How do we split sale proceeds? 50-50 According to your shares
(so 60-40, 75-25, etc)
Do we need to write a deed of trust? No Yes (1)
Do we need to write a will? No Yes
Can I sell the property without my co-owner's agreement? No Yes (2)
Does ownership automatically pass to the other if one of us dies? Yes No (3)
Will inheritance tax be due if one of us dies? Possibly Possibly

(1) If you don't, who inherits your share will be determined according to the rules of intestacy. (2) Provided you've agreed to this in your deed of trust. (3) You'll need to state in your will that you want your share to pass to your co-owner.

FAQs

  • Does my name have to be on the mortgage?

    Where a property is mortgaged, the name of each joint owner has to be on the mortgage. It's not possible to pick and choose which joint owner goes on the mortgage.

    It's possible to remove somebody's name from a joint mortgage, provided they're happy to sell or transfer their ownership of the property. More information about how this works in our What happens to a joint mortgage after separating? guide.

  • Do I pay inheritance tax if a joint owner dies?

    Where a joint owner dies, what determines if the survivor will need to pay inheritance tax is not whether you are joint tenants or tenants in common – rather, what's key is your relationship to the joint owner.

    A key thing to remember is that assets such as property which pass between married and civil partnered couples are exempt from inheritance tax. This means, regardless of whether you were joint tenants or tenants in common, if ownership of the property passes to your spouse or civil partner then inheritance tax does not apply.

    But this exemption does not apply to any other type of people, such as cohabiting couples.

    So if you own a property with a partner you're cohabiting with and ownership passes to them, then inheritance tax might be due. Whether it is will depend on the value of the deceased's estate, including their share of the property, and if this exceeds the inheritance tax free threshold (currently £325,000).

    Similarly, if ownership passes to a joint owner who is a friend, sibling, business partner, or to somebody who isn't a joint owner (and you're not married to them), inheritance tax might be due.

    Inheritance tax is a complex topic. See our Inheritance tax to go through the basics (including how to boost your inheritance tax-free threshold to £500,000).

  • What if I contribute to the mortgage but my name isn't on it and I don't own the property?

    If you're living with your partner in a property they solely own but you've contributed to the mortgage, you may be able to claim a 'beneficial interest' in the property in the event you split up. It's a complicated topic – particularly if you're not married – and one you should discuss with a legal specialist.

  • Do cohabiting couples have fewer property rights than a married couple?

    Generally speaking, there are fewer legal rights for cohabiting couples than married or civil partnered couples in the event of a relationship breakdown – for example, it can be harder to claim financial support or relief from your ex-partner or a greater share of your 'joint' possessions.

    Yet you're on more solid ground when it comes to property you jointly own as a cohabiting couple, be that as joint tenants or tenants in common. Your interest is not diminished by the fact you're not married. However, you may want to consider tenants in common and a deed of trust if your interest in the property is more complicated than a simple 50/50 split (which joint tenancy assumes).

    Watch out if you're a cohabiting couple but the property is solely owned by your partner, as you'll have far fewer rights to it in the event of a relationship breakdown than if you were married. You can try claiming a beneficial interest in the property – for instance, if you've been contributing to the mortgage – but this can be tougher to achieve than if you were married.

    This is a very complex area of law and there are no hard and fast rules, so if you need support it's best to seek legal advice.

  • What does 'severance of a joint tenancy' mean'?

    It's possible to switch from owning a property on a joint tenants basis to a tenants in common basis and vice versa.

    There are various reasons for wanting to switch. Perhaps there's been a change in the relationship between you and your joint owner, or possibly there's somebody else you'd prefer to inherit your share of the property.

    'Severance of a joint tenancy' refers to the process of switching specifically from joint tenants to tenants in common. Unlike switching from tenants in common to joint tenants, where you need everyone's agreement, you don't need everyone's agreement to switch from joint tenants to tenants in common.

    If you're considering switching tenancy arrangement but aren't sure it's the right decision, it's worth seeking legal advice. For more details, including how to start the process of severing a joint tenancy, see Gov.uk

Need more mortgage & homes help?

Share this guide
MSE Forum

Have your say in our forum!

Joint tenants or tenants in common?

Spotted out of date info/broken links? Email: brokenlink@moneysavingexpert.com

MSE tools & calculators

Clever ways to calculate your finances 

Credit Card Eligibility

See which cards are likely to accept you

Tool

Loans Eligibility

See which loans you've the best chance of getting

Tool

MSE App

Get MSE on your Apple or Android phone

Tool

Broadband Unbundled

Compare broadband deals & save

Tool

Mortgage best buys

Compares thousands of mortgages

Tool

Mortgage Calculator

Eight calcs for all your mortgage sums

Tool
Tools and calculators

What the * means above
If a link has an * by it, that means it is an affiliated link and therefore it helps MoneySavingExpert stay free to use, as it is tracked to us. If you go through it, it can sometimes result in a payment or benefit to the site. It's worth noting this means the third party used may be named on any credit agreements.

You shouldn’t notice any difference and the link will never negatively impact the product. Plus the editorial line (the things we write) is NEVER impacted by these links. We aim to look at all available products. If it isn't possible to get an affiliate link for the top deal, it is still included in exactly the same way, just with a non-paying link. For more details, read How this site is financed.

MoneySavingExpert.com Limited is an appointed representative of MONY Group Financial Limited. MONY Group Financial Limited is authorised and regulated by the Financial Conduct Authority (FRN: 303190). The registered office address of both MONY Group PLC and MONY Group Financial Limited (registered in England No. 3157344) is MONY Group House, St. David's Park, Ewloe, Chester, CH5 3UZ.