Owning a property in the UK is something quite a lot of people do – if they are not the sole owner, then clearly they own it with someone else – and that is where the words “tenants in common” and “beneficial joint tenants” come into play.
For example, you might be talking about a freehold (you own the land and the building on it) or leasehold (you own a flat for a period of years, that will eventually expire). You might own with or without a mortgage. But if you own with someone else, you have to describe the way you own it. There are two ways.
Beneficial Joint Tenancy (often shortened to Joint tenants)
This is ownership that the majority of married couples choose, unless they have had taxplanning advice – it means that although both owners are shown on the title deeds, they each have the right to the whole of the property, between them. If one owner dies, the remaining owner is entitled to the whole of the sale proceeds. The ownership passes like a bank account – all that is required is the submission of a death certificate and the completion of a form DJP sent to H M Land Registry.
Tenancy in Common
This is where instead of both owners owning an undivided share, each owner has said that they own a separate share of the proceeds of sale. It doesn’t mean literally putting up walls in the house and segregated areas (although that’s often the joke).
It means that on the death of one of the owners, the ownership of their share passes under their will (or if they have no will, on intestacy) – they can control what happens to their share.
How can you tell which is which?
When you buy a house, your conveyancing solicitor will ask you to sign a document that effects the transfer from the old owner to you – on that document, there is a box to tick saying how you want to own it.
If you subsequently want to change the ownership, then you will need to complete a severance, send the Land Registry form to the Land Registry. They will then send you a new version of the title deed showing that there is a restriction on who can receive the proceeds of sale.
Why do I want to know? What’s the point?
If you are owning a house with your brother, you might want your share to go to your family when you die – or at least to have a say in whether that should happen. If you are getting divorced, you might want to make sure that if you died, your share would pass following your will. If you want to set up arrangements whereby you control what happens to “your share” of the house, you need to start from the position of actually having a share.
Wills and the rest 