Homes and Property

Joint tenancy or tenancy in common?

Our lawyer Fiona McNulty answers your questions
Question: I am 29 and keen to get on the property ladder before I am 30. I am thinking of buying a flat with a colleague, two thirds owned by me and one third by him. I expect we will "cash in" and go our separate ways after about five years. What's the difference between a joint tenancy and tenancy in common, and what can we do now to make it easier when we come to sell?

Answer: Joint tenancy is where each party owns the whole of the property and when one dies the deceased's share passes automatically to the survivor. If the property is sold during the lifetime of the joint owners, the proceeds are usually divided equally, although this can alter if there is a divorce, or in the case of court proceedings regarding long-term cohabitees.

It would be advisable for you to be tenants in common in unequal shares, as you would each then own a separate and distinct share of the property. When one of you dies, his or her share passes to the person named in the deceased's will, or if there is no will, under the rules of intestacy it goes to the next of kin. If you sell the property during your lifetimes the net proceeds will be divided according to your shares in the property.

Instruct your solicitor to draft a declaration of trust confirming your shares and the terms of your agreement, which should cover matters such as responsibility for any mortgage payments, insurance, general outgoings, when you will sell, the right to an option to buy the other's share before marketing the flat, etc. You should each seek independent legal advice to protect your interests.

These answers can only be a very brief commentary on the issues raised and should not be relied on as legal advice. No liability is accepted for such reliance. If you have similar issues, you should obtain advice from a solicitor.

What's your problem?


If you have a question for Fiona McNulty, email legalsolutions@standard.co.uk. We regret that questions cannot be answered individually.

Fiona is a partner in the residential real estate team at Thring LLP (www.thrings.com).

These answers can only be a very brief commentary on the issues raised and should not be relied on as legal advice. No liability is accepted for such reliance. If you have similar issues, you should obtain advice from a solicitor.



  • New homes in London's Zone 1 on a Zone 2 budget

    Our exclusive research shows a "price wall" formed by the Northern line, with property values to the east less than half those in the west. We reveal the emerging lower-value districts in Zone 1 for buyers on a Zone 2 budget.

  • London's top property growth areas

    Wise homebuyers can get ahead of the curve by buying in London's potential growth areas, thanks to new transport links, regeneration projects and the arrival of iconic new buildings such as the Shard.

  • Embassy exodus returns acres of central London to its residents

    As the embassies exit Mayfair and Marylebone, their former bases will free up stunning family homes. While the move of many embassies to Nine Elms at Vauxhall is creating a new residential quarter including thousands of new apartments.

  • Homes gossip

    Keira Knightley and James Righton have bought a new marital home in Spitalfields; Reese Witherspoon's adds to her LA property portfolio; and Elton John's personal trainer sells up.

  • Auctions: bargain homes

    There are lots of housing opportunities in north, south or central London just waiting for brave buyers willing to bid on a family home or property investment.

  • New homes awards 2013: the winners

    This year's London Evening Standard New Homes Awards praised thoughtful design and spacious interiors at a range of developments, from city-centre family homes to clever conversions and regeneration projects.

  • London's latest new homes update

    Take your pick from London's newest properties, including 800 new homes in a former Bermondsey biscuit factory; family houses in Muswell near near the top-performing Fortismere School; and hundreds of new flats on the leafy slopes of Shooters Hill.

  • Property search: budget under £500,000

    This week, we uncover 1,000sq ft two-bedroom apartment in Stoke Newington, a four-bedroom stone house in the Cotswolds and an Old Station Master's house in the heart of Snowdonia National Park that comes with its own railway station.

  • First Olympic village homes up for rent

    Relaunched as East Village this week, the Stratford athletes' quarters is set to become home to thousands of London's renters in streets named with the Olympics in mind — from Prize Walk and Cheering Lane to Medals Way and Celebration Avenue.

  • Diary of an estate agent

    A Sydenham estate agent is left waiting by clients and looks on the bright side when he spots a huge hole in the road outside the office.


Advertisement


Sign up for our e-newsletter

Sign up for weekly property news, design trends, decorating & gardening tips, offers and giveaways...

Terms & conditions (Usual opt-out rules apply)

Thank you for signing up

We hope you enjoy the H&P weekly e-newsletter,
which will be delivered to your inbox every Wednesday,
starting soon.

Terms & conditions (Usual opt-out rules apply)

Please try again

Sorry, your email address was entered incorrectly. Please click here to try again.

Terms & conditions (Usual opt-out rules apply)




*