Frequently Asked Questions
Who is most likely to buy as tenants in common?
Friends, family or unmarried couples. Each individual in these groups has a separate interest than their joint owner have within the joint ownership that wants to keep their share in the property separate to their joint owner. Unmarried couples may choose to share the property as joint tenants in the future. The reason married couples buy as joint tenants is so that on their death the property transfers to their partner. It is also because a married couple's property is viewed to be jointly owned equally unless stated otherwise. HM Revenue and Customs state "If you live together with your spouse or civil partner, we normally treat income from property held in your joint names as if it belonged to you in equal shares and tax each of you on half of the income, regardless of actual ownership". For more information read the HMRC note on - Form 17 Income Tax declaration of beneficial interest in joint property and income
Who is most likely to buy as joint tenants?
Married couples. The reason married couples buy as joint tenants is so that on their death the property transfers to their partner. It is also because a married couple's property is viewed to be jointly owned equally unless stated otherwise. HM Revenue and Customs state "If you live together with your spouse or civil partner, we normally treat income from property held in your joint names as if it belonged to you in equal shares and tax each of you on half of the income, regardless of actual ownership".
How do you change from joint tenants to tenants in common?
You can sever the joint tenancy at any time to go to beneficial tenants in common. Click here to read how - Change from Joint Tenants to Tenants in Common.
How do you change from tenants in common to joint tenants?
Like the above, you can change from tenants in common to joint tenants at any time. For example, an unmarried couple who get married may wish to change from tenants in common to joint tenants on their residential home to offer them both more security. The process, however, is a little more involved so click here to read how - Change from tenants in common to joint tenants.
How do I confirm once I choose between joint ownership and tenants in common?
When you are purchasing the property your solicitor provides you the Land Registry TR1 Form to sign. When signing this you'll need to choose one of the following:
Section 10 - Declaration of trust. The transferee is more than one person and
- they are to hold the property on trust for themselves as joint tenants;
- they are to hold the property on trust for themselves as tenants in common in equal shares; or
- they are to hold the property on trust: - it is here you state your beneficial interest as tenants in common in unequal shares
Once you are satisfied you understand the difference between joint tenants and tenants in common and agree your intentions with your joint owners then you can tick the appropriate box and get the TR1 signed and witnessed. Most people who choose to own the property as tenants in common also draft a deed of trust so would tick the bottom option. If you need a deed of trust or want to talk about what is included in one, please call us and we can help - 0333 344 3234 or click ask us online here.