Co-ownership of your home: your options
People often co-own property - and you may well think of yourselves as co-owners or joint owners. However, there are two different forms of co-ownership and each is very different from the other.
Joint tenants
If you own your home as joint tenants and one of you dies the other inherits by survivorship irrespective of any contrary provision in a will. You do not have to be married or even cohabiting - anyone can own property as joint tenants.
The shares are always equal and there can be two or more people joint tenants. The last survivor takes all the property and can do what they like with it.
Tenants in common
People who own their property as tenants in common may do so in equal or unequal shares. Two or more people may co-own in this way. Their shares form part of their estate if they die and either pass under their will or under the intestacy rules (the rules that specify what happens if someone dies without leaving a will).
Tenancy in common can be very useful, especially in second relationships. It means you can leave your share of your property to your partner for their life and then on their death it can pass back to your children. This is called a life interest. You need a will to set up such an arrangement.
Also, if you are purchasing a home with someone and putting in unequal amounts of capital, then a tenancy in common can reflect those contributions. For example 70% to Mrs Smith and 30% to Mr Brown, or the first £30,000 to Mr Brown and the balance shared equally. You need your conveyancing solicitor to draw up a Declaration of Trust as to beneficial interests for this to happen. It will not happen unless you make it happen by some form of legal document.
Notice of severance
Notice of severance can be served by one joint tenant on the other to turn a joint tenancy into a tenancy in common. It may be receipted but this is not necessary for it to be effective. A restriction will not need to be registered at HM Land Registry. Then the property cannot be sold by the survivor without a Trustee being appointed to take care of the other person's interest if they have died.
This information is designed to be neutral and will be given to everyone to whom it is relevant. It is not designed to replace detailed legal advice tailored to your particular circumstances. It is intended to help you identify some options which may be open to you. It is not for reproduction and may not be used in any other context.
