Joint tenancies

Joint tenancies can be agreed with two or more people from the outset of the tenancy. Each is then responsible jointly and severally (individually) for meeting the terms of the tenancy in full, including paying the rent. This is known as ‘joint and several liability’.

For example, if a property is let jointly to four tenants A, B, C and D for a monthly rent of £400 (with each agreeing to pay £100 each), and C decides to leave, they will all still remain liable under the contract for all the rent. So C is still liable for rent even though she may not be living there, and A, B and D will each be liable to you, the landlord, for all the rent, including the £100 share from C. This situation will continue until either vacant possession is given back to the landlord or a new tenancy is signed, for example with A, B, D and perhaps E. If one of the joint tenants wishes to vacate, it is best to regularise the situation as soon as possible by signing a new tenancy agreement with the remaining and new tenant (s), so long as any replacement tenants can be referenced satisfactorily. Do not let the situation drift and allow tenants to come and go at will without signing a tenancy agreement with you, otherwise when you need to recover possession of the property you will encounter difficulties.

Joint tenancies – notice by one is not always notice by all

The rules on how and when a tenancy can be ended depend on whether the tenancy is a fixed-term or periodic one.

Fixed term: The tenancy cannot be ended prior to the expiry of the fixed term unless all of the joint tenants agree and either:

· the landlord agrees that the tenancy can end early, or

· the terms of any break clause that may be contained in the tenancy agreement are fully met and complied with.

In other words, as a joint tenancy is a single entity, all of the joint tenants have to agree to seeking a premature termination.

This was confirmed in the case of Hounslow v Pilling [1993] 1WLR 1242 Court of Appeal).

Briefly the facts of this case were that one joint tenant relied upon the Protection from Eviction Act 1977 5(1) in an attempt to protect her against eviction. It was held that “… one joint tenant cannot unilaterally determine the tenancy by giving an inappropriate notice, for example one which does not give the period of notice required at common law or by the terms of the tenancy.” The judgement went on to say that “… it is obvious that such an agreement cannot deprive the other joint tenant of the protection to which he is entitled under the Act.”

Periodic term: In the case of a periodic tenancy, irrespective of whether or not it was originally created by a fixed term agreement, one tenant can end the whole tenancy and does not need the agreement of the other joint tenants. However, the landlord must be given a valid written notice which complies with the Protection from Eviction Act 1977; as is always the case when a periodic tenant intends to terminate a tenancy.

This was confirmed in the case of Hammersmith and Fulham v Monk [1992] 1 AC 478, a House of Lords decision which is regarded to be the leading authority in respect of cases such as these.

Their Lordships found that it would be “…unconscionable that all [tenants] should remain bound for as long as only one of them should choose…” In other words, the tenancy should only continue for so long as all joint tenants want it to and notice to quit served by one joint tenant is therefore effective. However the validity and effect of the notice to quit is still governed by the provisions of any agreement that may form part of the tenancy.

Always check and be aware of this with joint tenancies, so you do not encouter issues when taking back possession of the property.