What are tenants in common?

It can be confusing to know if you should choose a tenant in common or a joint tenant’s ownership when purchasing a home. Both have their advantages and disadvantages. A tenant in common ownership has many advantages for people purchasing property together, particularly if there is an unequal financial contribution between the owners. Owning a property together as tenants in common is common among friends, siblings, and business partners.

What are tenants in common?

Tenants in common ownership is common when family members or business partners buy property. This allows them to keep separate shares but be joint owners. 

They want to keep separate shares when buying property. Each person owns a specific sized share of the property. You don’t have to split these shares evenly.

Tenants in common could be a better choice if one of you plans to pay more for the deposit or mortgage.

When a tenant in common dies, their share can go to beneficiaries named in their Will. If there is no Will, it follows intestacy laws, usually going to their next of kin.

Tenants in common do not automatically acquire the shares of other co-owners. The co-owners can sell or transfer their ownership interests without needing permission from the other co-owners.

If you choose tenants in common, it’s important to draw up a deed of trust. The deed explains what happens if there is a breakdown in the agreement. This can include where one of you wants to sell, but the other doesn’t.

The pros and cons of tenancy in common

Tenancy in common offers several advantages and disadvantages for property owners.

One of the pros is the ability to designate specific shares of the property, allowing for unequal ownership arrangements. This kind of joint ownership is helpful when family members or business partners want to keep separate shares.

Additionally, tenancy in common provides flexibility in ownership arrangements, allowing for the transfer of shares to beneficiaries upon the owner’s death. his is especially helpful for individuals who want to leave their property to their children or other beneficiaries.

However, there are also cons to consider. Disputes about how to manage and use the property can happen between co-owners. A legal agreement, like a deed of trust, can help resolve these issues.

Furthermore, unlike joint tenancy, there is no automatic right of survivorship in tenancy in common. Each owner’s share is passable to their beneficiaries upon their death. You should carefully consider these factors when deciding which type of ownership is appropriate for a particular situation.

A conveyancing solicitor can discuss your situation with you and advise on the best ownership type for your situation.

Joint tenants vs tenants in common

The choice between joint tenants and tenants in common depends on the needs and situations of the co-owners. Joint tenancy gives equal rights and the right of survivorship and is more common with married couples and long-term couples. This allows for an equal share. In contrast, tenancy in common allows for separate shares and better 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.

Learn more in our guide Joint Tenants or Tenants in Common: What’s The Difference?

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.

Can a surviving tenant in common sell the property

When a tenant in common dies, their share of the property does not automatically go to the other owners. This is different from a joint tenancy.

Their interest in the property goes to their heirs. This happens according to their Will. If there is no Will, it follows the rules of intestacy.

Any co-owner can sell their share. However, they may need help from the other owners or a court order. The remaining co-owners may also have the option to buy out the selling party’s share.

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,

Request a call back below or call us on 0114 2743 481 to book your appointment today.