Joint Ownership Explained – How Shared Property Shares Work

If you’re looking at buying a house with a friend, a sibling, or a partner, you’ll probably hear the term “joint ownership.” It simply means two or more people own a slice of the same property. Each person’s slice is called a share, and the shares can be equal or different depending on what you all agree on.

How Joint Ownership Is Set Up

When you sign the contract, the deed will list all owners and their share percentages. Most people choose a 50/50 split, but you can own 30% while the other person holds 70% if that matches the money each puts in. The important part is that everyone’s name is on the title, so each owner has legal rights to the property.

There are two common ways to hold joint ownership in the UK:

• Joint Tenancy: Everyone owns the whole property together. If one owner dies, their share automatically passes to the surviving owners. This is called the right of survivorship.
• Tenancy in Common: Each owner has a distinct share that can be passed on to anyone they choose in a will. The property doesn’t automatically go to the other owners when someone dies.

Choosing the right type depends on how you want your share to be treated after death and how you plan to split responsibilities like mortgage payments and maintenance.

What Happens When a Co‑Owner Dies?

This is the biggest question people have. If you’re in a joint tenancy, the surviving owners simply inherit the deceased’s share – no probate needed for that part. The property stays intact, and you continue to own it together.

In a tenancy in common, the dead owner’s share becomes part of their estate. Their heirs can inherit that share, which means a new person could suddenly have a say in the house. If the heirs want to sell, you might have to negotiate a buy‑out or deal with a forced sale.

To avoid surprises, many joint owners write a clear will that says who should get their share. Some also add a “right of first refusal” clause in their agreement, giving the surviving owners the first chance to buy the share before it goes to outsiders.

There’s another practical step: contact the mortgage lender as soon as possible. The lender will need to know who’s now responsible for the loan. If the deceased was the primary borrower, you might have to refinance or add a new name to the mortgage.

Finally, don’t forget the property tax and council tax bills. These will need to be updated to reflect the new ownership structure.

Joint ownership can be a great way to get onto the property ladder, but it comes with responsibilities. Talk to a solicitor early, decide between joint tenancy and tenancy in common, and make a plan for what happens if someone passes away. Clear communication now saves headaches later.

Got more questions about joint ownership, shares, or inheritance? Our team at Florin Court Real Estate Hub is ready to help you sort out the details and find the right property for your situation.