PARTRIDGE & WILSON
——— SOLICITORS ———

JOINT OWNERSHIP

There are two ways in which property can be held by joint owners.  It is essential that your title deeds properly record your intentions in this respect.

The two ways in which property may be held are as follows:-

Joint Tenants
Persons who buy property as “joint tenants” are automatically deemed to own the property equally.  When the property is sold the proceeds will be divided equally whether or not the parties have contributed equally to the purchase price.  If one joint tenant dies, the whole of the property automatically passes to the surviving joint tenant who will become the sole owner of the property.  The deceased joint tenant cannot leave their interest in the joint tenancy to anyone by Will.

Tenants in Common
Persons who buy property jointly as “tenants in common” can choose to  hold the property in equal or unequal shares which can record their individual contributions to the purchase price. If one tenant in common dies, the surviving tenant in common does not automatically become the owner of the property.  The share of the deceased tenant in common will pass in accordance with the terms of his or her Will or if they have not made a Will, then in accordance with the intestacy rules.

It is often the case that the joint owner who has children from a previous marriage will wish to benefit them rather than the other joint owner and a tenancy in common is essential in this instance.  Also, for inheritance tax purposes it may be advisable for spouses to hold the property as tenants in common to allow a survivorship clause incorporated in their Will to be effective.