When seeking to buy property or change the ownership arrangements of a property you already own, it’s worth knowing the differences between the two main types of ownership. Depending on your needs and interests, joint tenancy or tenants in common will provide you with the property arrangement you need, and this article will explain how.
Joint Tenants
This method is the preferred choice of couples, as personal interests are more likely to be shared interests, and property is shared and inherited equally by joint tenants.
Joint tenants receive the right of survivorship, which transfers the deceased owner’s share of the property into part of the estate itself. You can find out more here:. A drawback of this arrangement is that it becomes more difficult to give your property to others, as regardless of your wishes, joint tenancy does not permit the entitlement of the property to others.
Joint tenants can do a severance of joint tenancy, where the ownership structure is changed to tenants in common, granting each member an equal share of the property. This can be helpful for wills or simplifying the division of property in the event of a divorce. Those seeking a severance of joint tenancy are advised to seek help and advice from experienced solicitors who can guide them through the process.
Tenants In Common
As you’ve probably guessed by now, tenants in common divide their property ownership into shares between the contributing parties. These shares can be reflective of each party’s respective contributions to the cost, meaning larger contributions can give you a greater ownership share and a higher percentage of a potential sale.
With different shares, it’s easier to bequeath property in wills to family or friends. In the event of joint tenancy, a death would otherwise result in the other owner inheriting the entire property – an advantage or disadvantage depending on your personal interests.
This method is preferred for business partners or groups of friends and family that want to own property whilst maintaining their own personal control over their contributions and shares.
