Joint tenancy is a type of ownership where two or more tenants have joint and equal rights to a property. Find out all you need to know here
Joint tenancy is a type of ownership where two or more people are equal owners of a property.
When you enter into a joint tenancy mortgage, all tenants have equal rights to the property and each tenant owns the whole property. This means that if one wants to sell, the others must agree.
What’s more, if one of the tenants were to die, their share of the property would pass to the remaining tenant or tenants. You cannot leave your share of the property to someone else in your Will.
All owners will be responsible for keeping up with the mortgage repayments, so if one tenant can’t pay, the remaining tenants must cover the shortfall.
Joint tenancy is ideal for married couples or couples who intend to get married.
A joint tenancy mortgage could also be suitable for siblings or family members who want to make a joint investment.
The main difference between joint tenancy and tenants in common relates to the nature in which the property is owned by the tenants, and what happens if one of the tenants dies.
Joint tenants own a property in equal measure. If one of the tenants were to die, their share of the property automatically passes to the remaining tenant or tenants. If joint tenants want to sell the property, all tenants must agree.
Tenants in common is different, as each tenant owns a share in the property and there is no legal requirement for the share to be equal. If one of the tenants in common were to die, their share of the property would pass to whoever they have chosen as a beneficiary (as outlined in their Will).
It is possible to change ownership from a joint tenancy to a tenants in common. You can do this without the other owners’ agreement.
To do this you need to serve a written notice of change, or a ‘notice of severance’, and make an application to the HM Land Registry. You need to apply for a ‘Form A restriction’ or you can make the application through a solicitor. Find all the information you need here.
Taking out a joint tenancy mortgage with someone is a big commitment so it’s important that you trust your joint owner. You also need to sit down and discuss what would happen if one of you were unable to meet the mortgage repayments or what would happen if one of you wanted to sell the property and the other one didn’t.
Your home may be repossessed if you do not keep up repayments on your mortgage
Here are 10 top tips to help improve your likelihood of being accepted for a competitive mortgage deal
It’s vital to balance your family budget books between saving and borrowing.
The amount of compensation you can claim from the FSCS if your bank fails is changing from January 1 next year.
Put in how much you need to borrow, the length of the loan and the interest rate, and we’ll tell your monthly payment
With savings interest rates so low, many people are investing in residential property with the help of special mortgages
A Help to Buy mortgage can boost you onto the property ladder, so here’s all you need to know about how they work
Arm yourself with essential information so you can choose the right type of loan.
Are you a first time buyer? There are mortgages designed specifically for you
How to decide which is the right type of mortgage when you’re buying your home
A look at the reasons why you might consider remortgaging onto a new loan
When choosing a mortgage, the interest rate you’ll be charged is one of the most important factors.
Can't find what you're looking for? Try looking at our news, views and in-depth mortgage guides
Mortgage Guides - Mortgage News - Mortgage Providers - View all articles - View all guides
