Joint Ownership of Property - How to Co-Own a property
(Last Updated: 08/12/2023)
15/06/2021
275
5 min read
The joint ownership of property is common when buying a property as it makes the purchase more affordable. Unmarried couples buying their first home, parents helping purchase a property for their child or even family passing down property from generation to generation. There are, however, important factors to consider with co-ownership and what the legal implications of these are especially if the relationship between the joint owners breaks down and one party wants to sell and the other doesn't. The co-owners could be left with a lengthy legal battle trying to force a sale.
In this Joint Ownership of Property article we examine how you can jointly own property in England and Wales, what the legal implications are and how co-owners can protect themselves and their investment in the property from unforeseen changes in their relationship such as if a co-owner dies, wants to sell or stops paying the mortgage.
Joint Ownership of the Legal and Beneficial Interest
The legal owners of the property are registered at the Land Registry and you can find out who the current legal owners are by searching here - Search for property information from HM Land Registry. The beneficial ownership is how the beneficial interest is shared and is either shared as joint tenants 100% shared equally, on in separate shares as tenants in common (also called tenancy in common). Read more about Beneficial Ownership vs Legal Ownership. You can only have 4 joint owners registered at the Land Registry, however you can have any number of beneficial owners.
Joint Tenant v Tenant In Common
With shared property ownership the co-owners must choose whether to own the property as joint tenants or tenants in common.
Joint Tenants Meaning(also known as joint tenancy or beneficial joint tenants) | Tenants in Common Meaning |
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Click to find How to Sever a Joint Tenancy and How to change from Tenants in Common to Joint Tenants.
How to find out if you are joint tenants or tenants in common?
When you buy a property as tenants in common a Form A restriction is registered over the legal title. To check if you own the property as joint tenants you can download the Land Registry title and look for the restriction which states:
Form A (Restriction on dispositions by sole proprietor)
No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.
If the above restriction isn't noted on the legal title the the property is held as beneficial joint tenants.
Can a joint owner of a property force a sale?
How you can sell depends on how you hold the property as joint tenants or tenants in common.
- Joint Tenants both joint owners need to agree to sell the property, or else they need severance of joint tenancy and then force a sale as tenants in common.
- Tenants in Common forcing a sale as tenants in common requires the joint owners to prove their intentions. An application for an order of sale will review the original intentions of the parties and then make an order. Find out about What an order of Sale is and Who can Get One?. It is easier to force a sale if the joint owners executed an express trust (Deed of Trust) that state what their intentions were for the property and what should happen if any of the joint owners wanted to sell the property.
What can joint owners do to protect themselves?
A joint tenancy suits a marital relationship where both parties view their share of the property as equal and don't want to have to look to a will to see who is to benefit from their family home. Whether this is suitable protection for joint owners is questionable considering the high divorce rate in England.
When buying as tenants in common, the relationship between the owners is normally that of investors, friends, family or unmarried couples. With these types of relationship it is advisable to seek further legal protection, through a Co-Ownership Agreement, such as a Deed of Trust:
Deed of Trust(also known as Express Trust, Bare Trust or Declaration of Trust) | Will |
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This is also called a tenancy in common agreement. When buying as tenants in common when one of the owners dies, their share in the property transfers to their estate. To protect the surviving owners each tenant in common should draft a will to state how they wish their estate to be handled in the event of their death. | As highlighted above, when buying as tenants in common when one of the owners dies, their share in the property transfers to their estate. To protect the surviving owners each tenant in common should draft a will to state how they wish their estate to be handled in the event of their death. |
Written by:
Andrew Boast
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Reviewed by:
Caragh Bailey
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
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