What is the Difference Between Joint Tenants and Tenants in Common?

INTRODUCTION

As we've explored in previous articles on Joint Tenants and Tenants in Common, there are significant inheritance implications when co-owning a property. Understanding these implications is crucial for effective estate planning.

This article briefly outlines and explains the Difference between Joint Tenants and Tenants in Common arrangements and the potential consequences of each arrangement.

Since this explanation is brief, we recommend you consult related articles for more detailed explanations.

UNDERSTANDING THE DIFFERENCES

Joint Tenancy and Tenants in Common are two main ways to co-own a property.

• Under Joint Tenancy, owners co-own the property under a "right of survivorship." If one of the co-owners in a property passes away, the surviving owner(s) inherit(s) the shareholding. This happens by law, even if it's stated otherwise in a Will.

• Tenants in Common prevent the automatic transfer of ownership of a co-owned property to the co-owner(s). Each owner can have a distinct shareholding in the property and can control how their shareholding is distributed according to their wishes in a Will.

REAL-WORLD RAMIFICATIONS OF THE JOINT TENANCY SCENARIO

Let's imagine a scenario where two brothers inherit their mother's property, and they co-own the property.

Under Joint Tenancy, the entire property goes to the surviving sibling if one of the brothers dies.

This raises all sorts of issues. Imagine a case where you are one of the siblings. Your spouse or children may not actually inherit your interest in the property, even if it were dictated in your Will.

However, Tenants in Common would ensure that your wishes are carried out as per your Will by allowing you to direct your share to whomever you wish.

HOW TO CHECK THE TYPE OF PROPERTY OWNERSHIP

If you co-own a property, you can check whether it's held as Joint Tenants or Tenants in Common by consulting any existing documentation in your possession, such as property purchase documents, or when you remortgage the property.

If you cannot locate these documents, you can use the Land Registry Property Information Service to locate the most up-to-date information for a nominal fee.

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