For many people, owning property is the biggest financial commitment of their lives. How you own your property can have far-reaching consequences. Whether you’re buying your first home, moving in with a partner, or planning for the longer term, understanding the difference between having a joint tenancy and being tenants in common is crucial.

Despite its importance, this decision is often rushed through, with little thought for the long-term impact.

Joint tenants, what does it mean?

If you own a property as joint tenants, you both own the whole property together. There are no divisible shares. If one of you dies, the other automatically inherits the property regardless of what a Will says.

This setup is common for:

  • Married couples
  • Long-term partners
  • People who want their share to pass automatically on death

But what if things change?

What if you’re in a second marriage and want your children from a previous relationship to inherit your share? Or what if you’ve contributed very different amounts to the purchase price? That’s where problems can arise.

Tenants in common, more flexibility, more protection – what does it mean?

When you own as tenants in common, each person owns a specific share of the property (which can be 50/50, or another ratio if agreed). These shares don’t pass automatically on death. Instead, they pass as per the terms of your Will (or the rules of intestacy if there is no Will in place).

This is often the better choice for:

  • Blended families
  • Couples with unequal financial contributions
  • Those wanting to ring-fence their share (e.g. for children, trusts, or tax planning purposes)
  • Asset protection planning for care home fees

Tenants in common arrangements are especially important when planning for the future. Whether that’s for inheritance, care costs, or even just relationship security.

Can you change how you own a property?

Yes. Even after you’ve bought a property, it’s possible to change the ownership structure. This process is called severing the joint tenancy, and it can be vital if your circumstances change.

We often recommend reviewing your property ownership when:

  • You update your Will
  • You separate or remarry
  • You do tax or estate planning
  • You purchase with someone outside your immediate family

It’s not just a tick-box

Too often, people realise to their surprise that the way they have owned a property for years overrules the terms of their carefully written Will. Sometimes it is the loved ones left behind who make the discovery when it is too late. The basis of ownership may seem to be a small detail when purchasing a property, but it can have enormous financial and emotional consequences later on.

At Gepp Solicitors, we work closely with clients to make sure their property ownership is aligned with their broader tax and estate planning goals. If you’re unsure how your property is held, we can help you check and, if needed, make changes to suit your wishes.

If you need advice or a review of your property ownership, or to discuss tax or estate planning, contact our Private Client team to arrange a friendly and confidential conversation.

Please contact our Private Client team on 01245 228125 or email privateclientenq@gepp.co.uk