When buying a property with someone else, one of the choices you’ll come across is whether to own it as joint tenants or tenants in common. Many people choose the tenants in common route, especially if they’re not married or have different shares in the property. But while this type of ownership offers flexibility, it also comes with a few downsides you’ll want to consider before signing anything.
Let’s take a closer look at the disadvantages of being tenants in common, particularly from a UK perspective.
Disputes Can Arise Over Maintenance and Costs
One major drawback is the potential for disagreements. Each co-owner is responsible for their share of the property, but what happens when one refuses to contribute towards repairs, renovations or council tax? There’s no legal requirement for equal payments unless stated in a separate agreement, so it can easily lead to conflict, especially if one party feels they’re picking up the slack.
Selling Can Be Complicated
Unlike joint tenants, tenants in common can sell their share independently. That might sound handy, but in practice, it can cause headaches. If one person wants to sell but the other doesn’t, it can create a legal standoff. In some cases, you might end up in court to resolve it. Also, trying to sell a partial interest in a property isn’t always easy – not many buyers are keen to own just a slice of a house.
Inheritance Can Get Messy
One of the key features of tenants in common is that each person can leave their share to someone else in their will. While this might suit some, it can lead to awkward situations. For example, if your co-owner dies and leaves their share to someone you don’t get on with – or someone who wants to sell up straight away – you could end up living with or negotiating with a total stranger.
It also means that if someone dies without a will, their share passes according to the rules of intestacy – not automatically to the surviving co-owner, as it would with joint tenants.
Mortgage Challenges
If you’re looking to get a mortgage as tenants in common, lenders might see it as a slightly riskier setup. While it’s certainly doable, it could mean stricter terms or fewer options, especially if one party has a poor credit history. If one person defaults on their share of the repayments, the other may still be held liable for the full amount.
Legal Costs and Paperwork
Unlike joint tenancy, where everything is shared equally and straightforwardly, tenants in common arrangements often require extra paperwork. You’ll need a declaration of trust to clearly state who owns what, and possibly even a cohabitation agreement or legal advice if things change. All of this adds to the initial cost and admin burden.
Limited Control Over Who You Co-own With
In time, your co-owner might choose to pass their share to someone else – whether through a sale, inheritance or gifting. This means you could suddenly be sharing ownership with someone you’ve never met or don’t agree with. It’s a real possibility that can affect how you use or manage the property.
So, owning a home as tenants in common can work well, especially when people want to protect their individual stakes. But it’s important to weigh up the disadvantages carefully before committing. Issues around selling, inheritance, disagreements, and legal complexities are all potential stumbling blocks that can turn property ownership into a stressful affair.
If you’re thinking about buying a home this way, it’s always worth getting independent legal advice to ensure your interests are properly protected. What seems like a flexible option at first can become much trickier to navigate down the line.
FAQs
Yes, all tenants in common have the legal right to occupy the whole property, regardless of how much of it they own. That said, if one person owns a much smaller share but still lives there full-time, it can lead to tension, especially if they’re not contributing fairly to bills or upkeep.
In some cases, yes. If one owner wants to sell and the others refuse, they can apply to the court for an “order for sale”. The court may force the sale if it believes it’s fair and reasonable, particularly if the person wanting to sell is being blocked unfairly.
If there’s a joint mortgage, both parties remain responsible for the full repayment – regardless of who stays in the home. Ending a tenants in common arrangement doesn’t automatically change the mortgage. You’ll likely need to refinance or sell the property to resolve things fully.
While it’s not a legal requirement, it’s strongly recommended. A declaration of trust or cohabitation agreement can spell out each person’s share and responsibilities, helping avoid confusion or disputes later. Without it, there’s no clear evidence of who owns what.
Yes, each owner can choose who inherits their share by making a will. Unlike joint tenancy, there’s no automatic right of survivorship. However, this also means it’s vital to keep your will updated – especially if your personal circumstances change.
You can end it by selling the property and splitting the proceeds according to ownership shares, or by one person buying out the other. Another option is for all parties to agree to switch to joint tenancy, though this usually requires legal paperwork and possibly remortgaging.
It can be, especially if you’re contributing unequally to the purchase price. It allows you to protect your investment, but it’s crucial to have a proper legal agreement in place. Without that, there may be disputes later if the relationship breaks down.
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