CO-OWNERSHIP is the phrase used where land is owned by two or more people. This is a very common form of land ownership in the England and Wales. However, few understand the different ways you can co-own land and the implications of each.

Land can be owned by one or more people as ‘joint tenants’ or ‘tenants in common’.

When land is owned as ‘joint tenants’ each owner has an indivisible share in the property. They are all equally entitled to the whole property.

A key consideration of this type of ownership is that, upon the death of one co-owner, that co-owner’s interest in the property will automatically pass to the surviving co-owner(s). This is known as ‘survivorship’. Importantly, the property does not pass under the deceased estate.

Conversely, ‘tenants in common’ is where each co-owner has a distinct share in the property. The right of survivorship does not apply and when one co-owner dies their equitable interest in the property will pass with their estate.

If you own property as tenants in common, it is essential that you have a declaration of trust in place documenting each co-owners share in the property. There are many ways your share of the property can be valued, for example a percentage split or expenditure repayment and profit sharing.

It is also vital that you have made a will so that, as well as knowing what share of the property you own, your family knows how you want it to be dealt with.

If you would like further information on co-ownership, preparing a declaration of trust or any other aspect of family law, please contact Ian Stirzaker on 01905 723561 or e-mail Ian.Stirzaker@smesolicitors.co.uk.

IAN STIRZAKER SME Solicitors