Tenants in Common vs Joint Tenants: How Couples Should Actually Buy Together

Every conveyancer asks the question on the first call: joint tenants or tenants in common? The answer matters more than the names suggest. Get it wrong and you can lose tens of thousands when one of you dies or when the relationship ends.

Joint tenants

All co-owners own 100% of the property together, indivisibly. Three consequences flow from this:

• Equal shares only. You cannot record 70/30 or 60/40. Each co-owner has an equal interest by definition.
• Right of survivorship. If one co-owner dies, the property automatically passes to the surviving co-owner outside the will, regardless of what the will says.
• All decisions are joint. Selling, remortgaging and major changes require everyone's consent.

Joint tenancy is the default and works well for most married couples on equal financial footing.

Tenants in common

Each co-owner owns a defined share, e.g. 60/40 or 50/50 or any other split. Three consequences:

• Defined shares. The shares are recorded in a declaration of trust, separate from the title register.
• No automatic survivorship. If one co-owner dies, their share passes under their will (or intestacy rules if no will). The survivor does not automatically inherit it.
• Each share can be sold or transferred separately (subject to the others' rights and any restrictions in the declaration of trust).

When tenants in common is right

• Unequal contributions to the deposit or mortgage.
• One person owned the property before the relationship and is being joined by a partner.
• You have children from a previous relationship you want to inherit your share.
• You are unmarried (the cohabitation default rules do not automatically protect you, see the unmarried partner buying guide).
• You want flexibility for inheritance-tax planning (each spouse can use their nil-rate band separately).

When joint tenants is right

• Married couple buying together with similar financial contributions.
• You both want the survivor to take 100% of the property on death without needing to wait for probate.
• Estate is well below the inheritance tax nil-rate band threshold.

The declaration of trust

If you choose tenants in common, you also need a declaration of trust (sometimes called a deed of trust). This is a separate document, usually drafted by your conveyancer for £200 to £500, that records:

• The exact percentage shares each person owns.
• Who paid what toward the deposit, fees and any improvements.
• How proceeds are split if you sell.
• Whether the shares change over time (e.g. if one person pays more of the mortgage).
• What happens on death, separation or sale.

Without a declaration of trust, the default assumption is that tenants in common own equal shares, which often does not match the financial reality.

The inheritance tax angle

Each spouse or civil partner has an inheritance tax nil-rate band of £325,000, plus a residence nil-rate band of £175,000 on the family home. Used together, a couple can pass on £1 million inheritance tax free.

Joint tenancy passes the property automatically to the survivor under the spousal exemption (no IHT). On the second death, only the survivor's nil-rate bands are available.

Tenants in common allows each spouse to direct their share separately. The first to die can leave their share to a trust for the children, using their own nil-rate band, while the survivor keeps lifetime use. On the second death, only the survivor's share is in their estate. For high-value estates, this can save substantial IHT.

Changing your mind later

You can convert joint tenancy to tenants in common at any time by filing a notice of severance with HM Land Registry. The process costs around £50 if you do it yourself or £150 to £300 through a solicitor.

Conversion in the other direction (tenants in common to joint tenants) is more complex and usually requires a new deed.

Either spouse can sever the joint tenancy unilaterally without the other's consent. The notice only needs to be served on the co-owner, not agreed by them.

On separation

If you separate while joint tenants, the court has wide discretion to redistribute the property regardless of legal title. Marriage matters more than the title structure for divorce.

If you separate as cohabiting tenants in common, the declaration of trust governs the split. If there is no declaration of trust, the court starts from equal shares unless someone can prove a different intention, which is hard and expensive.

Practical decision tree

• Married, similar contributions, no children from previous relationships, modest estate → joint tenants.
• Married, unequal contributions, children from previous relationships, larger estate → tenants in common with declaration of trust.
• Unmarried, any situation → tenants in common with declaration of trust. Non-negotiable.
• Buying with parents or siblings → tenants in common with declaration of trust.