If you are the joint owner of a property with another person or persons it is probable that you will own as a “joint tenant”. In this context the word “tenant” actually relates to ownership and is nothing to do with leases.
Ownership of land by two or more people as joint tenants means that they each own the property; they do not own shares in it but individually own it all.
One effect of this is that on the death of one joint tenant, his or her joint tenancy in the land passes to the other joint tenant or tenants.
Most married couples and many co-habitees own properties as joint tenants and therefore should one die, the property will automatically be owned by the survivor. This will apply even if the deceased person has made a Will leaving his or her share to somebody other than the other joint owner. For example, a husband might, under the terms of his Will, leave all his Estate (including his home) to someone other than his wife. If that house, however is held by way of joint tenancy with his wife then in the event of his death the house will automatically pass to his wife despite the terms of his Will .
It is possible to “sever” the joint tenancy of the property, and this is a step that is often taken when relationships break down. The effect of the severance is that it is possible to leave one’s interest in jointly owned property by Will. The disadvantage that may arise with severing the joint tenancy is that if your co-owner dies first, his/her share will pass to the person to whom he has bequeathed his/her interest by Will. If you do decide to sever the joint tenancy it is obviously also very important to make a Will and we will be happy to help you with this.
As to the value of each party’s share, it is usually 50% although not always. The value of each party’s interest can sometimes be a complex matter and we would be happy to advise you about this.
It is especially important upon severing the joint tenancy to make a Will and we will be happy to help you with this.
