Buying A Property Together

4 December, 2025 5 minutes reading time

Buying a property with a partner, family member, or friend is an exciting milestone, but it also involves making essential legal decisions. One of the most significant choices you will face is deciding on your legal ownership structure and understanding how it influences your equity. This decision not only affects your rights while you own the home but also determines what happens if your relationship changes or one owner passes away.

Here is an overview of the main methods to hold property jointly and how you can safeguard your financial contributions.

The Two Pillars of Joint Ownership 

In England and Wales, when two or more people buy property together, they can choose between two legal arrangements: joint tenants or tenants in common. This choice affects how ownership is shared and, most crucially, how the equity is divided.

1.  Joint Tenants

Sometimes called beneficial joint tenants, this is a common choice for married or long-term partners. There are some important points to consider, including:

• You and your co-owner(s) share the entire property equally, with no separate shares. Legally, you are regarded as one single entity.

• The ‘Right of Survivorship’ is a key feature. If one owner dies, their interest automatically passes to the remaining joint owner(s), regardless of what’s written in a Will. This means you cannot leave your share to someone else.

• When the property is sold, or the joint tenancy is terminated – or officially ended – the proceeds are divided equally. This occurs even if contributions to the deposit or mortgage were not the same.

2. Tenants in Common

This option is often preferred when contributions vary or owners wish to leave their share to specific beneficiaries. For example:

• Each owner holds a distinct, clearly identified portion of the property. These shares can be equal (such as 50/50) or different (like 60/40 or 75/25), depending on their financial contributions.

• If an owner dies, their share does not automatically transfer to the remaining owner(s). Instead, it is allocated according to their Will or, if there is no Will, according to intestacy laws.

• When the property is sold, the proceeds are divided according to the fractional shares they hold.

Property Ownership – Key Features

Feature	Joint Tenants	Tenants in Common
Ownership of Equity	Always equal shares (treated as one entity).	Defined shares (can be equal or unequal, e.g., 60/40).
Inheritance Rule	Right of Survivorship: Share automatically passes to the surviving owner(s).	No Right of Survivorship: Share passes according to the deceased owner's Will (or intestacy rules).
Will Control	You cannot leave your share to someone else in a Will.	You can leave your specific share to anyone in your Will.
Protecting Investment	Difficult, as shares are always equal.	Excellent for protecting unequal investments (requires a Declaration of Trust).
Typical Scenario	Married couples and long-term partners with equal contributions.	Friends, siblings, or partners with unequal contributions or existing children/family they wish to inherit.

How to Protect Your Equity: The Declaration of Trust 

If you’re considering being tenants in common or have unequal financial contributions as joint tenants, a Declaration of Trust—sometimes called a Deed of Trust—is a valuable tool. It’s a legal document that clearly shows who owns what in the property, making your agreements official and easy to understand. 

Why is This so Important? 

Without it, the law might assume an equal 50/50 ownership split, which could be unfair if one person contributed more. This could lead to complications when selling or if circumstances change.

Using a Declaration of Trust allows you to protect your initial contributions by ensuring the person who paid a larger deposit receives that amount first from the sale proceeds. You can also specify different ownership shares, such as 70% to 30%, to accurately reflect each person’s contribution.

It’s also an excellent way to outline responsibilities for ongoing payments like the mortgage or maintenance, and to plan for the situation if you decide to part ways. Moreover, it helps establish a clear process for resolving disagreements or managing future sales, making things run more smoothly and avoiding stressful legal disputes. 

Can I Change the Ownership Structure?

Yes, you can change your legal ownership structure after buying a property. The most common change is switching from joint tenants to tenants in common. This process is called severing the joint tenancy. 

How is Joint Tenancy Severed?

Severing a joint tenancy is generally a simple legal process that usually does not require the agreement of the other owner(s) if done correctly. This process involves:

1. The person wishing to sever the joint tenancy must send a formal notice of severance to the other joint owner(s).

2. You then register the severance with the Land Registry using Form SEV. This informs any potential buyer or lender that the property is now held as tenants in common.

Once the joint tenancy is severed, the parties automatically become tenants in common with equal shares (e.g., 50/50), unless a Declaration of Trust is created at the same time to specify unequal shares. 

When to Consider Severing the Joint Tenancy

Individuals often consider changing their ownership structure for the following reasons:

1. A primary reason is for estate planning. By becoming tenants in common, you gain the ability to leave your specific share of the property to a beneficiary in your Will (e.g., children from a previous relationship).

2. If a couple separates, severing the joint tenancy ensures that if one party dies before the financial settlement is finalised, their share passes according to their Will, rather than automatically to the former partner.

3. If one party contributes significantly more towards a mortgage repayment or major renovation after the initial purchase, severing allows them to create a Declaration of Trust reflecting the new unequal beneficial ownership. 

Our Advice 

Deciding how to hold your property is a crucial legal decision that significantly impacts your finances. This choice is especially important for unmarried couples. They do not automatically receive the same legal protections as married couples if they separate.

If an individual contributes unevenly, or if one person uses a gift or inheritance for the deposit, take action. The most effective way to legally protect individual investments is to establish a Tenancy in Common supported by a Declaration of Trust.

If you would like more information or guidance on co-ownership of property, please don’t hesitate to contact us. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

Partnerships & Accreditations