Joint Property Ownership in the UK: The Must-Know Rules

When buying, inheriting, or becoming a trustee of a property with another person, you must decide how you want to own the property together. This decision impacts what happens if one owner passes away or if the joint owners decide to separate.

The HM Land Registry requires you to declare the type of ownership when registering the property. This guide explains the two types of joint ownership, how to change ownership types, and what happens in special cases like selling the property when one owner loses mental capacity.

Types of Joint Ownership

There are two main types of joint property ownership in the UK:

1. Joint Tenants

When you own property as joint tenants (also known as beneficial joint tenants):

• Equal Rights – All owners have equal rights to the entire property.
• Automatic Transfer on Death – If one owner dies, their share automatically passes to the other owner(s).
• No Will Control – You cannot pass on your share of the property in a will.

This type of ownership is common among married couples or those who want the property to go directly to the surviving owner.

2. Tenants in Common

When you own property as tenants in common:

• Different Ownership Shares – Owners can have unequal shares in the property (e.g., one owner holds 70%, the other 30%).
• No Automatic Transfer on Death – If one owner dies, their share does not automatically go to the other owner(s).
• Can Be Included in a Will – You can leave your share of the property to someone else in your will.

This type of ownership is suitable for business partners, unmarried couples, or co-owners who want control over their share after death.

Changing the Type of Ownership

You can change ownership from:

• Joint tenants to tenants in common – Common in cases of divorce or separation, allowing you to leave your share to someone else.
• Tenants in common to joint tenants – Useful when getting married and wanting equal rights to the property.

This process is free and can be done through HM Land Registry.

Transferring Ownership

If a sole owner wants to add another person to the title, they can change to joint ownership (either joint tenants or tenants in common). This process is called transferring ownership and usually requires legal assistance.

Selling the Property When an Owner Loses Mental Capacity

If a joint owner loses mental capacity (for example, due to dementia or illness) and you need to sell the property, you must:

• Apply to the Court of Protection – This is required because the incapacitated owner cannot legally make decisions.
• Obtain Legal Authority – The court may appoint a deputy to manage the sale on behalf of the affected owner.

This ensures that the interests of all parties are legally protected during the property sale.

Choosing the right type of joint property ownership is essential for managing rights, inheritance, and future changes. Whether you are buying with a partner, family member, or business associate, understanding the difference between joint tenants and tenants in common will help you make an informed decision.

For any legal or financial implications, consult a property law specialist before making changes to your ownership structure.

FAQ’s