What happens to a property share when a tenant in common passes away? Does the survivor automatically own the whole house, or is a Grant of Probate necessary? These are vital questions for anyone who owns property jointly but not as joint tenants. This blog looks at the definition of tenants in common and the consequences of one owner’s death. Understanding whether a Grant of Probate is required is essential when dealing with a deceased owner’s share.
What Does ‘Tenants in Common’ Mean?
Each person has a defined share of the property under a “tenants in common” agreement. This does not imply equal shares, though. The amount that each tenant has invested in the property is frequently used to calculate their share. A family might purchase a home, for instance, in which the father would own 50% and the children would own 25% each. Another possibility is if friends bought a property together. A tenancy-in-common agreement is typically utilised in these circumstances. If there is no valid will, the estate will be distributed according to the Rules of Intestacy.
In contrast to a joint tenancy, a tenants-in-common arrangement allows each owner to sell their share of the property or leave it to a beneficiary in their will. However, the agreement may contain a provision prohibiting the owners from selling without first allowing one of the other owners to purchase it. The tenants-in-common agreement should specify who is responsible for paying the expenses and the mortgage. Each owner typically has a joint account into which they deposit their share of the costs. The owners must comply with certain legal requirements:
- Without a court order, they cannot be evicted from the property.
- Generally, all owners must agree to any mortgage or secured lending involving the property as a whole.
It is crucial to remember that more owners can be added.
The UK Government provides official guidance explaining different types of joint property ownership.
How do Tenants in Common Affect Inheritance?
Tenants in common may own a property in the following circumstances:
- Family arrangements: Siblings may choose to invest jointly, or parents may wish to help their children climb the real estate ladder.
- Cohabiting couples: Unmarried couples who live together might wish to ensure they safeguard their share if their relationship ends.
- Business partners may want to give their family members a share of the property.
The beneficiaries of the deceased’s shares should have been specified in their will, if they had a valid one. If there is no valid will, the Rules of Intestacy prioritise spouses/civil partners first, then children, then parents, before reaching the Crown if no family members are alive.
Regardless of the property’s value, the executor or administrator must typically apply for a grant of probate. This is required to deal with the legal title and the ‘restriction’ held at the Land Registry. You can find official instructions on what to do when someone dies via GOV.UK.
Contact Probate Forms for probate advice on 0209 9859553.
