What you need to know about buying a property jointly
Buying a property jointly is one of the biggest financial decisions you will ever make — and it is far more common than people realise. Whether you are purchasing with a partner, a friend, a family member, or a business associate, the legal structure you choose at the outset can have significant consequences for years to come.
This guide explains everything you need to know about joint ownership property UK rules, including the two main types of ownership, the key legal documents involved, your mortgage responsibilities, and how a conveyancing solicitor can protect your interests throughout the process.
The two ways to own property jointly in the UK
When buying a property jointly, the first decision you need to make is how you will legally hold it. There are two options under UK law, and the one you choose will affect what happens to the property if your relationship changes, or if one of you passes away.
Joint tenants
As joint tenants, you and the other owner hold the property together as a single unit. There are no separate, identifiable shares — you each own the whole property equally, regardless of how much each person contributed to the deposit or mortgage payments.
The key feature of joint tenancy is the right of survivorship. If one owner dies, the property passes automatically to the surviving owner — it does not form part of the deceased person’s estate and cannot be left to someone else in a will.
This is a popular choice for married couples and those in civil partnerships who want a clean, equal arrangement with straightforward inheritance.
Tenants in common
As tenants in common, each owner holds a defined, separate share of the property. Those shares do not have to be equal — a split of 70/30, 60/40, or any other division is perfectly valid, and can reflect how much each person contributed to the purchase.
Crucially, when a tenant in common dies, their share does not automatically pass to the other owner. Instead, it forms part of their estate and will be distributed according to their will — or, if they have no will, under the rules of intestacy.
Tenants in common is often chosen by unmarried couples, friends buying together, or those who have children from previous relationships and want to protect their share for their own beneficiaries.
You can find further detail on the differences between these two structures in our guide on joint tenancy vs tenants in common.
Why a Declaration of Trust matters for joint ownership
If you are buying a property jointly as tenants in common and contributing unequal amounts, a Declaration of Trust is one of the most important documents you can put in place. It is a legally binding document that formally records each person’s share and sets out what happens to those shares if the property is sold, or if one party wants to exit the arrangement.
A well-drafted Declaration of Trust can cover a range of important scenarios, including:
- Who owns what percentage of the property
- How the net sale proceeds will be divided
- What happens if one owner wants to sell and the other does not
- Whether either party has a right of first refusal to buy the other’s share
- How contributions to ongoing mortgage payments and maintenance costs will be handled
Without a Declaration of Trust, disputes about who owns what can become extremely difficult and expensive to resolve. Even if you have a strong case, pursuing it through the courts requires legal representation and can take considerable time.
A Declaration of Trust is typically prepared by a conveyancing solicitor at the same time as the main property purchase, so there is no need to arrange it separately. Our residential conveyancing team can prepare yours as part of your transaction.
Not sure which ownership structure is right for you?
Choosing between joint tenancy and tenants in common is not always straightforward, particularly when contributions are unequal or circumstances are complicated. Our conveyancing solicitors can explain both options in plain English and help you make the right decision for your situation. Get in touch with our team today for clear, practical advice with no jargon.
Should unmarried couples use a cohabitation agreement?
If you are buying a property jointly as an unmarried couple, it is worth considering a cohabitation agreement alongside your Declaration of Trust. Unlike a Declaration of Trust, which deals specifically with property ownership, a cohabitation agreement covers the broader financial and domestic arrangements between you.
A cohabitation agreement can set out:
- Who is responsible for mortgage payments, bills, and maintenance costs
- What happens to shared assets if you separate
- How any jointly owned property will be dealt with if the relationship ends
Under English and Welsh law, cohabiting couples do not have the same legal protections as married couples or those in civil partnerships. Without a cohabitation agreement, a partner who has not been registered as a legal owner has very limited rights to the property — even if they have contributed to mortgage payments or improvements over the years.
The cost of drawing up a cohabitation agreement varies depending on your circumstances, but taking this step early is significantly less expensive and less stressful than dealing with a dispute through the courts later.
Need Help With Your Joint Property Purchase?
Our experienced conveyancing solicitors can guide you through joint ownership, your Declaration of Trust and the full property purchase process.
Understanding joint mortgages when buying together
Most people buying a property jointly will take out a joint mortgage. Before you do, there are a few important points to understand about how joint mortgage liability works in the UK.
The most significant factor is joint and several liability. This means that each borrower is individually responsible for the full mortgage debt — not just their share of it. If one party stops making payments, the lender will pursue the other for the full outstanding balance. It is therefore essential that both parties have open and honest conversations about affordability, employment stability, and financial commitments before applying.
Other points worth noting include:
- Credit histories are linked. When you take out a joint mortgage, your financial profiles become connected. One person’s poor credit history can affect the entire application.
- Most lenders allow up to four applicants. You do not have to limit a joint purchase to two people — this can be useful for friends or family members buying together.
- One person can pay the mortgage. Lenders are not concerned with who makes the payments, as long as they are made. However, both parties remain liable for the full debt regardless of any private arrangement between them.
If your contributions to the deposit or monthly payments are unequal, your Declaration of Trust should reflect this clearly to avoid disputes further down the line.
Tax implications to consider when buying a property jointly
Buying a property jointly can have a range of tax implications, and it is important to understand these before you proceed. Joint ownership property UK tax rules can be complex, particularly where one or both buyers already own another property.
Stamp Duty Land Tax (SDLT)
If one buyer is a first-time buyer and the other is not, first-time buyer stamp duty relief will not apply — the transaction will be taxed at the standard rates. Additionally, if either buyer already owns a property, the higher rates for additional dwellings may apply to the entire purchase price.
You can calculate your estimated SDLT using our stamp duty calculator, which is updated to reflect current rates.
Capital Gains Tax (CGT)
If the jointly owned property is ever sold and it is not your main residence, Capital Gains Tax may be payable on any increase in value. Each owner pays CGT on their own share of the gain, so ownership structures with unequal shares can have meaningful tax consequences.
Inheritance Tax (IHT)
Under joint tenancy, the right of survivorship means the property passes outside the estate — but this does not necessarily mean it is free from Inheritance Tax. For unmarried couples in particular, IHT may still be payable on the value of the property received. Tenants in common, by contrast, can use their will to plan how their share is passed on in a more tax-efficient way. Taking specialist advice on your overall estate planning is always recommended.
Why you must make a will if you are tenants in common
If you decide to hold the property as tenants in common — or if you are simply not married to your co-owner — making a will is not optional; it is essential. Without a valid will in place, your share of the property will be distributed under the rules of intestacy, which may not reflect your wishes and could result in your share passing to someone other than your partner.
A will allows you to specify exactly who inherits your share of the property and on what terms. It also provides clarity for your loved ones at an already difficult time, and can be used as part of broader estate and tax planning.
Our Law Society guide to making a will provides a useful starting point if you are considering this step.
What the legal process involves and how long it takes
When buying a property jointly, the conveyancing process is broadly the same as a sole purchase — but there are additional steps involved, particularly around agreeing and registering the ownership structure.
Key stages in the process
Once your offer has been accepted, your conveyancing solicitor will carry out searches, review the title, raise and respond to enquiries, and report to you on any issues. If you are taking out a joint mortgage, the lender will instruct their own solicitor (though in many cases the same firm acts for both you and the lender, which can speed things up).
If you are setting up a tenants in common arrangement, your solicitor will prepare a Declaration of Trust at this stage, which both parties will need to review and sign. Once contracts have been exchanged and completion takes place, your solicitor will register the property — and your chosen ownership structure — with HM Land Registry.
How long does it take?
A straightforward freehold purchase with no chain typically takes between eight and twelve weeks from having an offer accepted to completion. Leasehold properties, or those in a longer chain, can take longer. Additional documents such as a Declaration of Trust or cohabitation agreement do not significantly extend the timeline when prepared alongside the main transaction.
Delays most commonly arise from mortgage offer conditions, slow responses to enquiries, or complications with the title. Choosing a proactive solicitor with good communication can make a real difference here.
Ready to get started with your joint property purchase?
Buying a property jointly is an exciting milestone, but getting the legal structure right from the start protects everyone involved. From advising on the right ownership structure to preparing your Declaration of Trust and managing the full conveyancing process, our team is here to make it straightforward.
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