16/10/2026
🏡 Buying a property with a spouse, civil partner, partner, relative or business partner is not only a financial decision. How the ownership is registered and agreed can directly affect:
▪️ how much of the property's value each person is entitled to;
▪️ how the proceeds are divided if the property is sold or one party wants to withdraw from the investment;
▪️ who may continue living in the property after the relationship ends;
▪️ who receives the property when a co-owner dies;
▪️ responsibility for the mortgage, repairs and other costs; and
▪️ tax, wills, insurance and estate planning.
The terms joint tenants and tenants in common describe forms of co-ownership. They do not relate to renting a property or to a tenancy agreement.
⚖️ Legal Ownership and Beneficial Ownership
This distinction is often misunderstood during the property-buying process in England and Wales.
The legal owners are the people named on the title register at HM Land Registry. For property in England and Wales, the legal estate is held jointly. The law does not divide the legal title into separate percentage shares between the registered owners.
Beneficial ownership is the right to receive the economic benefit from the property. It determines who is entitled to the sale proceeds, rental income or remaining equity after the mortgage and other costs have been paid. Beneficial ownership may be held as joint tenants or tenants in common.
A title register will not usually record shares such as 70/30 or 60/40. Those shares should be clearly recorded in the transfer, a Declaration of Trust or another appropriate legal document. A Form A restriction on the title may indicate that the property is held on trust, but it does not, by itself, confirm each person's percentage share.
In addition, no more than four people can usually be registered as the legal owners. If more than four people contribute funds, an appropriate arrangement involving trustees and a trust document should be considered.
👥 Joint Tenants
Where beneficial ownership is held as joint tenants, the parties are together entitled to the whole property. Neither party has a separate percentage share that they can freely leave under a will.
The most important feature is the right of survivorship:
▪️ when one joint tenant dies, their interest automatically passes to the surviving joint tenant or joint tenants;
▪️ the property does not pass under the terms of the deceased person's will; and
▪️ this applies whether the parties are married, in a civil partnership or simply living together.
🟢 When Joint Tenants May Be Suitable
This form of ownership may be suitable where:
▪️ the parties want the survivor automatically to own the entire beneficial interest;
▪️ there is no need to preserve a separate share for children, relatives or other beneficiaries;
▪️ both parties understand and accept the effect of the right of survivorship; and
▪️ their estate planning, wills and insurance have been considered together.
‼️ Risks to Consider
Holding the property as joint tenants may not reflect the parties' true intentions where:
▪️ one person contributes most of the deposit but there is no agreement protecting that contribution;
▪️ one or both parties have children from a previous relationship;
▪️ one person wants their share to pass under their will;
▪️ family members contribute money towards the purchase but it has not been established whether the money is a gift, a loan or a beneficial interest; or
▪️ the relationship has broken down but the joint tenancy has not been reviewed.
In other words, contributing 70% of the purchase price does not automatically mean that the person will receive 70% of the net value when the property is sold.
🏘️ Tenants in Common
Where property is held as tenants in common, each owner has a separate beneficial share. The shares may be equal or unequal, such as 50/50, 70/30 or any other proportions agreed and properly recorded by the parties.
Unlike joint tenants:
▪️ a deceased owner's share does not automatically pass to the surviving co-owner;
▪️ that share forms part of the deceased owner's estate; and
▪️ it passes under the deceased owner's will or, if there is no valid will, under the intestacy rules.
🟢 When Tenants in Common May Be Suitable
This form of ownership is often worth considering where:
▪️ the parties contribute different amounts towards the deposit or mortgage;
▪️ the parties are not married or in a civil partnership;
▪️ one or both parties have children from a previous relationship and want to protect their children's inheritance;
▪️ parents or relatives contribute money and their interests need to be clearly defined;
▪️ the property is purchased as an investment, for letting or for business purposes; or
▪️ each person wants the right to leave their share under their will.
👫 Joint Tenants or Tenants in Common
There is no single option that is right for every family. The important question is not which form of ownership is "better", but which one accurately reflects the parties' intentions, contributions and estate-planning arrangements.
The parties may consider holding the property as joint tenants where:
▪️ the main aim is for the survivor automatically to own the entire property;
▪️ they do not want to divide the beneficial interest into separate shares; and
▪️ they do not need to preserve a separate share for children or other beneficiaries.
The parties may consider holding the property as tenants in common where:
▪️ they contribute unequal amounts towards the purchase;
▪️ they need clearly defined shares;
▪️ they have children from previous relationships or different estate-planning intentions;
▪️ parents, relatives or investors are contributing funds; or
▪️ they want detailed provisions governing a sale, the purchase of each other's shares and the allocation of costs.
Before signing the transfer or completing the transaction, the parties should discuss their intentions clearly with their conveyancing solicitor in England and Wales. Changing the arrangements later may take more time, incur additional costs and increase the risk of a dispute.
📄 How a Declaration of Trust Protects Joint Buyers
A Declaration of Trust, sometimes called a Deed of Trust, records how the parties hold and manage the beneficial interest in the property. It does more than record percentage shares.
Depending on the circumstances, the document may set out:
▪️ the amount of the deposit paid by each party;
▪️ the initial proportions of beneficial ownership;
▪️ who is responsible for the mortgage, insurance, service charge, council tax and household bills;
▪️ whether the cost of repairs or improvements changes the ownership shares;
▪️ whether one party may remain in the property after the other party dies or moves out;
▪️ the conditions for selling the property and how its market value will be established;
▪️ a right of first refusal to purchase the other party's share;
▪️ how the net sale proceeds will be divided after the mortgage, fees and any repayments have been deducted;
▪️ how negative equity will be dealt with;
▪️ a mechanism for resolving disagreements between the parties; and
▪️ whether money provided by parents is a gift, a loan or a beneficial contribution.
✋A Declaration of Trust Does Not Replace a Will
Where property is held as tenants in common, the Declaration of Trust defines the parties' interests in the property, but the will determines who receives a deceased owner's share. The two documents should be prepared so that they work together.
For example, a person may leave their ownership share to their children while giving their partner the right to remain in the property for a fixed period or for life. This arrangement must be drafted carefully because it involves a trust, estate administration, tax and the rights of the beneficiaries.
🔄 Changing from Joint Tenants to Tenants in Common
It is possible to change from joint tenants to tenants in common. This process is usually called severance of joint tenancy.
In many cases, one joint tenant may sever the joint tenancy by serving a valid written notice on the other owner and asking HM Land Registry to register a Form A restriction using Form SEV. The other co-owner's agreement may not be required, but the procedure and evidence of service must be handled correctly.
It is important to understand that:
▪️ severance changes how the beneficial interest is held; it does not automatically ▪️ remove anyone's name from the title;
▪️ severance does not automatically resolve every dispute about ownership shares, the mortgage or occupation rights;
▪️ changing from tenants in common back to joint tenants will usually require the agreement of all co-owners; and
▪️ if the parties have separated, are in dispute or there is a risk that one party may sell or transfer an interest, legal advice should be obtained before any action is taken.
💍 Special Considerations for Unmarried Couples
As at the date this article was updated, people who live together but are not married or in a civil partnership do not automatically inherit each other's estate under the intestacy rules. The Government consulted on reform in 2026, but proposed reforms should not be treated as law unless and until they come into force.
Therefore, living together for many years or having a child together does not, by itself, create the same rights as marriage or a civil partnership. The parties should consider:
▪️ a Declaration of Trust;
▪️ an up-to-date will;
▪️ appropriate life insurance;
▪️ an agreement covering the mortgage, costs and sale of the property;
▪️ the survivor's right to remain in the property; and
▪️ independent legal advice where the parties' interests differ.
In some circumstances, the survivor may consider bringing a financial claim against the estate under the relevant legislation. However, this is not an automatic right of inheritance and a successful outcome is not guaranteed.
📝 Whether Spouses and Civil Partners Need a Declaration of Trust
A Declaration of Trust may still be appropriate. If the relationship ends, the Family Court may make property adjustment orders, and the final outcome may not follow the ownership proportions previously recorded. However, the original ownership agreement may still be important evidence of the parties' intentions and contributions.
If one person dies while the property is still held as joint tenants, the right of survivorship remains particularly important. If the property is held as tenants in common, the will and estate plan will determine how the deceased person's separate share is dealt with.
Marriage or civil partnership therefore does not remove the need to review:
the form of beneficial ownership;
▪️ wills;
▪️ Inheritance Tax and any applicable reliefs; and
▪️ life insurance and the ability to repay the mortgage.
👵👴 Parents Contributing to a Property Purchase
Many Vietnamese families help their children to buy a property by contributing towards the deposit but rely only on a verbal understanding. This may lead to disputes if the child later separates, divorces, becomes unable to meet payments or dies.
Before the money is transferred, the parties should establish clearly whether:
▪️ the money is an outright, non-repayable gift;
▪️ the money is a loan that must be repaid; or
▪️ the contributor will receive a beneficial share in the property.
The arrangement must also comply with the requirements of the mortgage lender. If the contributor will have a right to occupy the property or an interest in it, the lender and the conveyancer must be fully informed. Where there is a conflict of interest, each party may need independent legal advice.
💰 Whether Ownership Shares Limit Mortgage Liability
Not necessarily. A Declaration of Trust regulates the relationship between the co-owners, but it does not automatically change the lender's rights under the mortgage deed and the mortgage conditions.
If the mortgage provides that the borrowers are liable jointly and severally, the lender may require one borrower to pay the full amount due, not only the proportion corresponding to that person's beneficial ownership.
A properly drafted agreement should therefore address:
▪️ who will make the monthly mortgage payments;
▪️ what will happen if one person stops paying;
▪️ whether payments made on behalf of the other person will be reimbursed or will change the ownership shares; and
▪️ what will happen if the sale price is insufficient to repay the mortgage and costs in full.
💸 Tax Considerations for Jointly Owned Rental Property
The proportions of beneficial ownership may affect rental income, Capital Gains Tax, Inheritance Tax and other tax liabilities.
For spouses or civil partners who live together, income from jointly owned property is usually treated as arising in equal 50/50 shares for Income Tax purposes. An exception may apply where the parties hold unequal beneficial interests and submit a valid Form 17 to HMRC with supporting evidence. Form 17 must reflect the parties' actual interests. It cannot be used merely to divide income in an arbitrary way to reduce tax. HMRC must receive the form within the strict time limit of 60 days from the date on which the declaration is signed.
Ownership shares should not be changed solely for tax purposes without first considering the consequences for SDLT, CGT, IHT, the mortgage and estate planning. Separate advice from a tax specialist should be obtained where necessary.
👉 Three Examples of Joint Ownership
1️⃣ Example 1 Unequal Contributions
Mr A contributes £210,000 and Ms B contributes £90,000. They want the net sale proceeds to be divided 70/30. Holding the property as tenants in common, together with a Declaration of Trust that clearly records the distribution formula and responsibility for the mortgage, may reflect their intentions more accurately than simply placing the property in their joint names.
2️⃣ Example 2 Both Parties Have Children from Previous Relationships
The parties want the survivor to remain in the property, but ultimately want each person's share to pass to their own children. Holding the property as joint tenants may result in the entire beneficial interest passing directly to the survivor. An appropriately drafted arrangement involving tenants in common, wills and a trust may protect both parties' plans.
3️⃣ Example 3 Spouses Want the Survivor to Own the Entire Property
The spouses do not need separate shares and want the survivor automatically to receive the entire beneficial interest. Holding the property as joint tenants may be suitable. However, they should still make wills dealing with their other assets, consider insurance and review their plans if their family circumstances change.
If the parties cannot agree, or if one person feels under pressure, they should pause and obtain independent legal advice before committing to the purchase.
🔷 How Alstern Solicitors Can Help
The consequences of choosing the wrong form of ownership or failing to put a Declaration of Trust in place may only become clear when one party wants to sell, the relationship ends or a co-owner dies. Alstern Solicitors' property solicitors in England and Wales can review the source of funds, the parties' contributions, the mortgage and their estate-planning arrangements, and advise on a structure suited to their specific circumstances.
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Information checked on 30 September 2026. Examples are illustrative. General information only, not individual legal, mortgage or financial advice.
