What Happens to a Jointly Owned Property If One Owner Dies? UK

If you own property with someone else in the UK, whether a spouse, partner, friend, or business associate, it’s vital to understand what happens to jointly owned property if one owner dies. Joint ownership brings benefits: shared costs, shared responsibility, and ease in buying the property together. But when one party dies, the legal outcomes depend on property ownership, whether there is a will, and the deceased’s other assets and liabilities.

This article by Parkgate explains clearly, using UK government rules, what occurs when one owner of a joint property dies. Whether you’re planning ahead, dealing with loss, or simply curious, this guide will help you understand joint tenants, tenants in common, probate, inheritance tax, and the steps you must take.

1. Legal Forms of Joint Ownership in England & Wales

What are Joint Tenants vs Tenants in common?

• Joint Tenants: under this form of ownership, each owner has equal rights to the whole property. There is no percentage split. If one joint tenant dies, their legal interest automatically passes to the surviving joint tenant(s).
• Tenants in Common: here, owners hold defined shares (which may be equal or unequal). When one owner dies, their share does not automatically pass to the others; instead, it becomes part of their estate. Beneficiaries inherit it via will or under intestacy.

How it’s Recorded

• When a property is registered with HM Land Registry, the legal ownership is recorded, and you choose (or have chosen) whether to be joint tenants or tenants in common. That choice is shown in key documents (e.g. panel 10 of form TR1). If tenants in common, a Form A restriction is often entered into the register to reflect that beneficial interests exist.
• If the ownership type is unclear, there are documents you can check: title deeds, trust deeds, and the application forms used when the property was first registered or transferred.

2. What Happens When a Joint Tenant Dies

If the property is held as joint tenants, then:

• Legal ownership automatically passes to the surviving joint owner(s) without the need for probate with respect to property ownership.
• To notify the HM Land Registry, you use the form DJP (Deceased Joint Proprietor). Along with the death certificate, this form updates the register by removing the deceased’s name.
• Probate is not needed purely for the property if it’s jointly owned under joint tenancy and the surviving joint owner is the only other registered proprietor.
• However, probate might still be needed for other assets in the deceased’s estate (unless everything passes by operation of law).

3. What Happens When a Tenant in Common Dies

When property is held as tenants in common:

• The deceased’s share does not automatically pass to the surviving co-owner. If there is no will, the deceased’s share passes under intestacy rules.
• The executor (if there is a will) or administrator (if no will) handles that share and uses probate or letters of administration to obtain legal authority.
• After that, to change the register (if needed), forms like AS1 (Assent), TR1 (Transfer) and AP1 (Application to Change the Register) may be needed.

4. How to Update the Land Registry

Updating the property register ensures legal clarity.

Registered vs Unregistered Property

• Registered property: data is held by HM Land Registry. Forms are used to update the register.
• Unregistered property: older or unusual properties might not be registered. Any transfer (due to death, sale, or gift) will lead to first registration.

Key Forms & Evidence

• Form DJP: to note the death of a joint proprietor and remove the deceased’s name. Requires a death certificate. No fee. (HM Land Registry)
• Form AS1: Assent – when property passes to the listed beneficiary via will under sole ownership.
• Forms TR1 and AP1: Transfer forms (if transferring ownership or selling), plus an application to change the register.

Evidence Required

• Official copy of the death certificate for the deceased.
• Probate or letters of administration are required when the transfer involves the deceased’s estate and the share is to be distributed.

5. Inheritance Tax and Financial Implications

Even though joint ownership simplifies property transfer in many cases, there are financial and tax implications to consider.

• Inheritance Tax (IHT): if the deceased’s estate (including their share of the property) is above the IHT threshold, their beneficiaries may owe tax. The surviving co-owner might inherit the property value, but other assets could push the total estate value up.
• Valuation of the deceased’s share: for IHT, the value of what the deceased owned (share in tenants in common; in joint tenancy, their interest before death) is included.
• Exemptions: transfers to spouses or civil partners are normally exempt from IHT.
• Debts: the deceased’s debts must be paid from their estate before inheritance. If property is owned by a sole owner or tenants in common, the deceased’s share might be used.
• Other assets: bank accounts, investments, other properties, and personal possessions. These all aggregate to an estate for tax and probate purposes.

6. Other Relevant Legal Rules

Intestacy Rules

• If someone dies without a will, their share of any property (tenants in common) is distributed according to statutory intestacy rules. Children, surviving spouses/civil partners, and other kin may inherit.

Beneficial vs Legal Ownership

• Legal ownership is what the Land Registry records. The beneficial owner is someone who really benefits from the property (they can live there, receive rent, etc.). These can differ. Trusts and wills often involve beneficial ownership.

Form A Restrictions

• Title registers may have a Form A restriction if the property is held as tenants in common, to protect beneficial interests. This restriction limits dispositions (sales, etc.) by a sole proprietor unless certain provisions (trust corporation or order of court) are met. (HM Land Registry)

Civil Partnerships / Spouses

• Ownership via joint tenancy may pass automatically to the surviving spouse or civil partner. If tenants in common, the deceased’s share is handled via will or intestacy. Legal rights of spouses/civil partners may also exist under inheritance law.

7. Step-by-Step Process to Deal With One Owner’s Death

Here is what the surviving owner or executor should typically do:

1. Obtain Death Certificate
   • An official copy of the death certificate is required.
2. Determine Type of Ownership
   • Check documents, deeds, and the title register to see if they are joint tenants or tenants in common.
3. Check If the Property is Registered
   • Use the property search tool from HM Land Registry.
4. Notify Land Registry
   • If a joint tenant died, file Form DJP with the death certificate to remove the name.
5. Obtain Grant of Probate or Letters of Administration (if needed)
   • If the deceased was the sole owner or was a tenant in common, their share must be transferred via will or inheritance.
6. Transfer Ownership or Assent
   • Use AS1 if passing property to a beneficiary under a will.
   • Use TR1 + AP1 if selling or transferring to someone else.
7. Update Legal and Beneficial Ownership
   • Please ensure that the register accurately reflects legal ownership. Consider Form A restriction where needed.
8. Deal with Tax/Debts
   • Please consider inheritance tax and notify HM Revenue & Customs if necessary.
9. Seek Legal Advice
   • Especially in complex cases: missing will, multiple beneficiaries, uncertain beneficial interest, trusts, and cross-border issues.

8. Common Problems and How to Avoid Them

9. Case Examples

Example A: A married couple owns property as joint tenants. One dies.

• Legal ownership immediately transfers to the surviving spouse.
• The surviving spouse files a form DJP with the death certificate. Probate is not needed for this property.

Example B: Two business partners own property as tenants in common (60/40). One dies without a will.

• The deceased’s 60% share becomes part of their estate under intestacy rules.
• The executor/administrator obtains letters of administration.
• Potentially beneficiaries (children, spouse, etc.) inherit that 60%. The surviving partner does not automatically receive it.

Example C: Spouse dies owning property solely. Will left everything to their partner.

• The executor uses a grant of probate.
• The surviving partner gets ownership under the will.
• The register is updated using either AS1 and AP1 forms or TR1 and AP1 forms, along with a death certificate and the grant of probate.

10. When You Should Seek Legal Advice / Who Can Help

• When the deceased had no will or the will is ambiguous.
• There may be multiple beneficiaries involved, potentially with conflicting claims or complex beneficial interests.
• When the property ownership type is unclear or disputed.
• This situation may arise when trusts are involved or when there are foreign or non-national aspects to consider.
• If inheritance taxes or other tax issues are likely,
• If the title register contains Form A restrictions, it may limit the actions of the surviving co-owner(s).

You can consult:

• Solicitor specialising in inheritance law or property law.
• Licensed conveyancer to assist with registration and land registry formalities.
• HM Land Registry itself for guidance on forms, though not for legal advice.
• Tax advisors for inheritance tax or estate tax issues.

11. Conclusion

Joint ownership of property can simplify things while both owners are alive, but when one dies, there are important legal steps to follow. Whether you hold your property as joint tenants or tenants in common significantly impacts the situation. The good news is that UK law provides clear processes: registering the death, using the right forms (DJP, AS1, TR1, AP1), and getting probate if necessary.At Parkgate, we recommend you check your title deeds now, plan for inheritance (a clear will helps), and keep your property documents organised. Should the time come, following the lawful steps ensures a smoother transition and peace of mind.