Buying a house together? The legal low-down on co-ownership

Buying a property with a partner, friend or family member can be an exciting step—but it’s also one of the most significant legal and financial commitments you’ll ever make. Co-ownership isn’t just about splitting the deposit or mortgage; it’s about understanding how the law treats your rights, responsibilities, and future interests in the property. 

In this guide, we break down the legal essentials of co-owning a home in England and Wales—so you can move forward with clarity and confidence. 

What is co-ownership?

Co-ownership simply means that two or more people legally own a property together. In England and Wales, this is recorded with HM Land Registry and forms part of the legal title.  

Importantly, co-owners are typically jointly responsible for any mortgage or secured loan, meaning a lender can pursue any one of you for the full debt if payments are missed.  

But the real legal nuance lies in how you choose to own the property.

The two main types of co-ownership

When buying together, you must decide between two legal structures: 

1. Joint tenants

Despite the name, this has nothing to do with renting. As joint tenants: 

• You each own the whole property equally 

• There are no defined shares 

If one owner dies, their interest automatically passes to the surviving owner(s) (known as the right of survivorship). This structure is often chosen by married couples or long-term partners who want simplicity and automatic inheritance. 

Key takeaway: You cannot leave your share of the property to someone else in your will under a joint tenancy.  

2. Tenants in common

This arrangement is more flexible. As tenants in common: 

• Each owner holds a specific share of the property (equal or unequal) 

• Your share can be left to someone else in your will 

• There is no automatic transfer on death 

This is commonly used where contributions differ—for example, if one party puts in a larger deposit or pays the mortgage. 

Key takeaway: Your ownership share can reflect your financial input and future intentions. 

Why your choice matters

Choosing between these two structures isn’t just a technicality—it has real-world consequences for: 

1. Inheritance planning

Joint tenancy prioritises simplicity, while tenancy in common gives you control over who inherits your share.  

2. Relationship breakdown

If you separate, your ownership structure will influence how proceeds from a sale are divided and to what each party is entitled.  

3. Financial fairness

Where contributions are unequal, tenants in common allows this to be formally recognised—something joint tenancy does not.  

The role of a Declaration of Trust

If you choose to buy as tenants in common, a Declaration of Trust (also known as a Deed of Trust) is strongly recommended. 

This legal document can set out: 

• Each party’s financial contribution 

• Ownership percentages 

• What happens if the property is sold 

• How disputes will be handled 

Without this, courts may assume equal ownership—even if contributions were unequal.  

What about mortgages?

Even if you own different shares, most lenders require a joint mortgage, meaning: 

• You are jointly and severally liable 

• Each borrower is responsible for the entire debt, not just their “share”  

This is a crucial risk to understand before entering into any co-ownership arrangement. 

Can you change ownership later?

Yes—ownership structures aren’t set in stone. You can switch between joint tenants and tenants in common (for example, after marriage, separation, or for estate planning purposes) and is also reversable. However, this involves a legal process and should always be handled with professional advice. 

Common pitfalls to avoid

• Assuming “50/50” is automatic: This depends on your legal structure and supporting documents 

• Not having a will: Particularly risky for tenants in common 

• Skipping legal agreements: Informal arrangements can lead to disputes 

• Overlooking future scenarios: Consider what happens if one party wants to sell or can’t pay 

Final thoughts

Co-owning a property can be a smart and practical way to get on the property ladder—but only if the legal foundations are solid. 

The choice between joint tenants and tenants in common will shape everything from inheritance to financial protection. Taking the time to understand your options—and documenting them properly—can prevent costly disputes down the line. 

How Kiteleys Solicitors can help

At Kiteleys Solicitors, we guide clients through every stage of the co-ownership process—from choosing the right ownership structure to drafting robust legal agreements that protect your interests. 

If you’re buying a property with someone else, getting tailored legal advice early can make all the difference. 

N.B. This article is for general guidance only and does not constitute legal advice. Specific advice should be sought for individual circumstances.