Joint Tenants or Tenants in Common: What’s The Difference?

Are you planning on buying property with someone else? One of the main decisions you will make during the conveyancing process is how to own the property. You can choose to be joint tenants or tenants in common. Both options have their advantages and disadvantages, and it’s crucial to understand the differences before deciding.

In this advice article, we will provide an overview of joint tenants and tenants in common, including their pros and cons. We will also discuss how to change from one type of tenancy to another. We will cover the main legal points of each type and how they can impact your mortgage.

Finally, we will look at what happens when one owner wants to sell in joint tenancy or tenancy in common. We will also discuss if you should have a cohabitation agreement.

An overview of a joint tenancy

Joint tenancy is a type of joint ownership where multiple owners have equal rights and shares in a property. The property remains within the joint tenancy arrangement and does not become part of one of the tenant’s estates if one owner dies. Their share does not automatically pass to family members or beneficiaries.

Learn more on What Does Joint Tenants Mean?

Understanding tenancy in common

Tenancy in common is another type of joint ownership that differs from joint tenancy. In tenancy in common, the co-owners can have unequal shares of the property. In joint tenancy, each owner has an equal share. In tenancy in common, each tenant can own different parts or percentages of the property.

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Tenancy in common vs joint tenants

The choice between joint tenancy and tenancy in common depends on the needs and situations of the co-owners. Joint tenancy gives equal rights and the right of survivorship. In contrast, tenancy in common allows for separate shares and inheritance rights.

Understanding these key differences is important. This helps you decide which type of joint ownership is best for your situation. A conveyancing solicitor can discuss your circumstances and advise on the best solution for you.

How to convert from joint tenancy to tenancy in common?

Converting from joint tenancy to tenancy in common involves a legal process with a conveyancing solicitor. This usually involves making a declaration of trust or other legal papers. These documents outline the new ownership type and each owner’s shares.

How to convert from tenancy in common to joint tenancy?

Converting from tenancy in common to joint tenancy requires the agreement and cooperation of all co-owners. The process may include legal steps, such as making a new deed or changing the current one to update ownership.

Deed of trust in joint tenancy and tenancy in common

A deed of trust is a legal document. It explains the agreement between joint owners in joint tenancy and tenancy in common. In joint tenancy, the deed of trust establishes equal rights for all co-owners and includes a right of survivorship.

In tenancy in common, the deed of trust states that each co-owner has separate shares of the property. No right of survivorship exists. The deed of trust is important. It defines ownership rights and explains the type of joint ownership for co-owners.

Should unmarried couples have a cohabitation agreement?

A cohabitation agreement can protect the rights of joint owners. It explains how to manage the property and what to do if they separate. This legal document helps prevent disputes, making it essential for unmarried couples. Seeking independent legal advice is advisable when creating a cohabitation agreement.

How does joint tenancy and tenancy in common affect your mortgage?

When it comes to joint tenancy and tenancy in common, their impact on your mortgage can vary. In joint tenancy, all owners have equal shares, which may make it easier to secure a mortgage. However, in tenancy in common, each owner is responsible for their own mortgage payments. Lenders may also require a declaration of trust for added protection.

What happens when one owner wants to sell in joint tenancy or tenancy in common?

When one owner wants to sell in joint tenancy or tenancy in common, the process differs. In joint tenancy, all owners must consent to the sale. In tenancy in common, one owner can sell their share without others’ consent.

Selling a share may require legal agreements and ownership transfers. The parties split the sale proceeds based on their shares in tenancy in common. In joint tenancy, surviving owners inherit the share of a deceased owner.

You should always discuss your options with a conveyancing solicitor before making any decisions.

Conclusion

Understanding the difference between tenants in common and joint tenancy is crucial for property ownership. Each option has its own pros and cons. Thinking about your needs and situation before making a choice is important.

Joint tenancy gives the right of survivorship. This means the property goes directly to the surviving owners when one owner dies. In contrast, tenancy in common allows for more flexibility. It also gives individual control over each owner’s share of the property.

Whether you choose joint tenancy or tenancy in common, it is best to talk to a conveyancing solicitor. They can help protect your interests. They will also explain how this choice may affect your mortgage and future decisions about the property.

How can a conveyancing solicitor help?

A conveyancing solicitor can help you choose the right type of property ownership for your situation. Our conveyancing team will handle all the paperwork for you.

We will help with the entire process from start to finish. This includes the exchange of contracts and completion. We will also give you a free, no obligation, conveyancing quote.

Once your matter is complete, our skilled conveyancing team will handle the final steps. This includes paying stamp duty and registering the property at the Land Registry for you. We will handle any questions the Land Registry may have after you submit your registration application.

The conveyancing team will make sure we follow all the rules. They will send you the final copy of the register. This document will have your name as the owner. It serves as proof that you own the property.

We understand that buying a property can be stressful, especially for first-time buyers. Our experienced staff will make the process smooth and easy for you. You will provide you with regular updates throughout the whole process.

Once your matter is complete, we will give you 10% off our Wills service. This means you will get 10% off the fees for making a Will with us. To receive this discount, please contact us within 1 month of your property completion.   

If you have any questions, please do not hesitate to contact us on the details below,

You can email Howells to make an appointment at [email protected] or call us:

Sheffield: 0114 249 66 66

Barnsley: 0122 680 51 90

Rotherham: 0170 936 40 00