Tenants in Common vs Joint Tenants: Which Should You Choose?

When you buy a property with someone else, whether a partner, spouse, friend, or family member, you and your co-owner must decide how you legally hold the title. This choice, made during your conveyancing process, determines what happens to the property if one of you dies, how you can leave your share in a will, and how easily you can sell or divide the asset later. Get it wrong and you could end up with a share of the property going to someone you never intended, or facing a lengthy dispute with a co-owner. There are two ownership structures available in England and Wales: joint tenants and tenants in common. Understanding the difference before you complete matters more than most buyers realise.

What joint tenancy means

Under a joint tenancy, you and your co-owner hold the whole property together, rather than each owning a defined percentage. Neither of you has an identifiable share that you can point to on paper. Instead, ownership sits as one single unit that both names hold jointly.

• Right of survivorship: If one owner dies, their interest passes automatically to the surviving owner, regardless of what their will says. This overrides any instructions in a will.
• No individual shares: You cannot sell, gift, or leave "your half" to someone else, because no defined half exists in law.
• Equal treatment: Both owners are treated as owning the whole property together, not 50% each on paper.
• Popular for married couples: Most married couples and civil partners choose joint tenancy because it keeps the family home with the surviving spouse without needing probate on that asset.
• Simplicity: There is no need for a formal agreement covering unequal contributions, since the structure assumes equal interest throughout.

Joint tenancy works well when both owners want the same outcome: for the property to pass automatically to the other if one of you dies, with no complications from wills or estate planning. It is the default recommendation from most solicitors for couples with no children from previous relationships and no unequal financial contributions to protect. A large majority of married couples buying together choose this route, largely because it mirrors how they already view their finances.

Tenants in common is the alternative structure, and it works very differently from joint tenancy. Instead of owning the whole property together, each person holds a distinct, identifiable share. These shares can be equal, a 50/50 split, or unequal, reflecting how much each person actually put into the purchase.

What tenancy in common means

• Defined shares: You might hold 50%, 60%, 70%, or any other percentage that reflects your deposit and mortgage contributions.
• No automatic survivorship: When you die, your share does not pass to your co-owner automatically. It passes according to your will, or under intestacy rules if you have not made one.
• You need a will: Without a valid will, your share could pass to relatives under the rules of intestacy rather than to the person you would choose, even your own partner if you are unmarried.
• Flexibility on unequal contributions: If one buyer puts down a £60,000 deposit and the other £20,000, tenants in common lets you record that difference formally rather than splitting the asset 50/50 regardless of contribution.
• Common for non-married buyers: Unmarried couples, friends, siblings, and buy-to-let investors typically choose this structure because it protects individual financial contributions.

Because there is no automatic right of survivorship, tenants in common suits situations where you want control over what happens to your share of the property after you die, particularly if you have children from a previous relationship, want to leave your share to someone other than your co-owner, or simply want your financial contribution formally protected. The trade-off is that you must keep your will up to date, since it is the only document that determines where your share goes.

Once you understand each structure individually, the practical differences become clearer when placed side by side. The table below summarises the core distinctions that matter most when you are deciding which route suits your purchase.

The most important distinction is what happens on death: joint tenancy passes the whole property to the survivor automatically, while tenants in common relies on your will. The second biggest difference is flexibility: tenants in common allows unequal shares that reflect real financial contributions, while joint tenancy treats both owners as equal regardless of who paid what. Switching between the two is possible in both directions, though the process and paperwork differ depending on which way you are converting, covered later in this guide.

If you are still unsure which structure fits your situation after reading the table, the scenarios in the next section walk through five common buyer situations with a clear recommendation for each, so you can match your circumstances against a real example rather than guessing from a comparison alone.

The right structure depends on your relationship, how you are funding the purchase, and what you want to happen to your share if you die or the relationship ends. These five scenarios cover the situations Money Saving Advisors sees most often.

Married couples buying together

Most married couples and civil partners choose joint tenancy, especially first-time buyers arranging a first-time buyer mortgage together. You are already combining finances and want the family home to pass automatically to the surviving spouse without probate complications. If you both contributed equally and have no children from previous relationships to protect, joint tenancy is usually the simplest, lowest-cost option.

Unmarried partners with unequal deposits

If you are not married and one of you is putting down a larger deposit, say £60,000 against your partner's £20,000, perhaps including a gifted deposit from family, tenants in common lets you record that split formally. Combine it with a declaration of trust so the exact percentages and what happens if you split up or sell are documented in writing, rather than left to informal agreement.

Friends or siblings co-buying

When friends or siblings buy together, tenants in common is almost always the right choice. You are not a couple with shared long-term finances, so an automatic right of survivorship to someone who is not your family rarely makes sense. Defined shares also make it far easier to divide proceeds fairly if one of you wants to sell your share later.

Buy-to-let investors

Couples investing in buy-to-let property together often use tenants in common for tax efficiency, since it lets you split rental income in proportions that do not have to match your ownership of the family home. For example, a higher-rate taxpayer might hold a smaller share of the rental property to reduce their tax liability on rental income, while their partner, a lower earner, holds the larger share.

Blended families with children from previous relationships

If either of you has children from an earlier marriage or relationship, tenants in common protects their inheritance. You can leave your share to your children in your will while your partner retains their share and, often, a right to continue living in the property. Joint tenancy would instead pass your entire interest automatically to your new partner, potentially disinheriting your children.

Tax guidance in this section is general. Every household's circumstances differ, and you should speak to a qualified tax adviser or accountant about your specific situation before making a decision based on tax alone.

Inheritance Tax

With joint tenancy, your share passes automatically to the survivor and typically qualifies for spouse exemption if you are married or in a civil partnership, meaning no Inheritance Tax is due on that transfer. With tenants in common, your share passes under your will, and if it goes to someone other than a spouse or civil partner, such as children from a previous relationship, it may form part of your taxable estate.

Capital Gains Tax

When you sell, Capital Gains Tax is calculated on each owner's share of the gain. Under tenants in common, this means an owner with a 70% share pays tax on 70% of the gain, while a joint tenant is typically treated as owning an equal share for tax purposes regardless of the informal arrangement between you.

Stamp Duty

Stamp Duty Land Tax is unaffected by which structure you choose at the point of purchase. It only becomes relevant later if you carry out a transfer of equity, for example adding or removing a name from the title, where Stamp Duty may apply to the value of the share changing hands if it exceeds the current threshold.

A deed of trust, also called a declaration of trust, is a legal document that records exactly how much each owner contributed to a property and what should happen to the proceeds if you sell. It is not compulsory, but if you are buying as tenants in common with unequal contributions, it is one of the most useful documents you can put in place alongside your conveyancing fees and other purchase costs.

• Ownership shares: States the exact percentage split, for example 65/35, based on deposit and ongoing mortgage contributions.
• Sale proceeds: Sets out how money is divided if you sell, including whether either party is reimbursed for a larger deposit first.
• Mortgage contributions: Records who pays what towards monthly mortgage payments, and how that affects the final split.
• Exit terms: Covers what happens if one owner wants to sell and the other does not, including buyout options.
• Typical cost: Expect to pay £200 to £500 for a solicitor to draft a deed of trust, though this rises for more complex arrangements involving multiple owners or businesses.

Get this drawn up at the same time as your purchase conveyancing, since adding one later, once you have already completed, involves an additional transfer of equity and further legal fees.

Your circumstances can change after you have bought a property together, whether you get married, separate, or simply reconsider your original decision. Both directions of switching are possible, though the process and cost differ.

Severing a joint tenancy

Converting from joint tenants to tenants in common is called severance, and either owner can do this unilaterally under Section 36(2) of the Law of Property Act 1925, meaning you do not need your co-owner's agreement. You complete a Form SEV and submit it to the Land Registry, along with a restriction that prevents a sale without both owners' consent. This costs around £40 to £90 in Land Registry fees, plus solicitor fees typically ranging from £150 to £300 to prepare the paperwork and accompanying deed of trust.

Converting tenants in common to joint tenants

Going the other way requires agreement from all owners, since you are giving up your individual share. This involves preparing a new transfer document and registering it at the Land Registry. Solicitor fees for this conversion typically run £200 to £400, depending on complexity, and it is worth checking whether this affects your existing mortgage terms before you proceed.

Co-ownership disputes happen, whether a relationship ends or one owner simply wants to release their money from the property while the other wants to keep it. Under both ownership structures, if you cannot agree, either owner can apply to the court under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA), which can order a sale, determine each party's share, or resolve occupation rights.

Court action is expensive and slow, often taking months and costing several thousand pounds in legal fees, so mediation is almost always worth trying first. A mediator can help you agree a buyout price, a sale timeline, or a compromise on occupation without involving the courts. If you are approaching a purchase and want to avoid this situation altogether, get the ownership structure and deed of trust right from the start. Find a conveyancer who can set this up correctly alongside your purchase.