If it is intended that more than one person will own property, you need to consider your joint-ownership options.

Under English law there are two options available to you:
· You and your co-owners can own property as “joint tenants”; or
· You and your co-owners can own property as “tenants in common”.

JOINT TENANTS
If you and your co-owners own your property as joint tenants, it essentially means that you are each an equal owner of the entire property.

On the death of one of you, the ownership of the entire property will automatically pass to the remaining owners. This will be the case irrespective of what you might have provided for in your will. (However, the value of your share of the property will still be included in your estate for the purposes of calculating any inheritance tax due.)

TENANTS IN COMMON
If you and your co-owners own your property as tenants in common, it means that you all own a specified share of the property.

If two of you are tenants in common in equal shares, you each own 50% of the property; however, you can also be tenants in common in unequal shares.

If you own property as tenants in common, your share of the property remains in your estate upon your death – it does not pass automatically to your co-owner, but rather passes according to your will, or under the law (if you don’t have a will).

Generally speaking, if you are a joint owner of a property, you will be registered as such on the title at the Land Registry.

However, it is possible to co-own a property, and for your interest to be protected, without it being formally registered. Please see our guide “Co-Ownership Arrangements” for further details.

© Clegg Manuel 2008

To download a .PDF of this guide Click Here