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It can be difficult to get on the property ladder, especially in current times when, with ever-rising property prices, it is near impossible to escape news of the struggle aspiring homeowners face.

Over the last few decades, house prices have risen considerably.  Even factoring in the effects of the financial crisis, returns have been high. With lenders becoming more stringent in their lending criteria, however, would-be homeowners may struggle to secure a mortgage.  It is, therefore, no surprise that some people choose to pool their resources in the hope of buying a home that may otherwise be out of reach.

There are, however, things to consider, and when two (or more) parties find out they have different ideas about what to do with the property, the relationship can quickly turn sour. This, in turn, can cause upset and expense.  One major decision that needs to be made from the outset is how the property is to be held. There are two types of ownership – joint tenants and tenants in common.

What is the difference?

Put simply, if the property is held as joint tenants, you will own the whole of the property.  You will not each have a quantified share, and you will not be able to leave a share of the property in your will.  Joint tenants have what is called a “right of survivorship”.  If two people own a property as joint tenants and one of them dies, the property will pass automatically to the surviving owner.  This type of ownership is most commonly used by partners or spouses, and if one of the two joint tenants dies, their share of the property will not fall into their estate but will automatically pass to the other living owner.

Tenants in common do not have a right of survivorship.  Where property is held on this basis, the owners will own a specified share in the property.  Those shares may be equal but do not have to be.  If, for example, one of the parties has made a greater contribution towards the purchase price in order to protect their investment, that may be reflected in the share that they hold, and usually, a declaration of trust is drawn up at the time of purchase setting out the proportions owned by each party.  On the death of one of the tenants in common, the share owned by that person does not automatically pass to the other but will fall into their estate and pass to their heirs through a will or, where there is no will, according to the rules of intestacy.  Importantly, the property does not pass to the other owner. This type of ownership is most commonly used by friends, business partners, or in second marriages and civil partnerships.

Deciding to co-own a property is a huge decision that can have a life-changing impact on your quality of life down the line.  It is, therefore, essential that you get proper advice before making any binding decision so that you can make the right choice for your circumstances and understand how ownership can be changed in the event that those circumstances change in the future.

If you would like any further information on property ownership, please contact Selina Turner or one of the conveyancing team at Larken & Co at 01636 703333 or email This email address is being protected from spambots. You need JavaScript enabled to view it., who would be happy to assist.