Tenants in common: meaning, how It works vs joint tenants

When two or more people buy property together, they need to choose between two types of co-ownership: joint tenants or tenants in common. This decision affects what happens to the property if someone dies, how it can be sold and how ownership is divided.

Tenants in common is particularly relevant if you're buying with unequal contributions, want to leave your share to someone specific in your will, or are purchasing with family or friends rather than a spouse. Many first-time buyers choose this arrangement when parents contribute to the deposit.

In this guide, we'll explain what tenants in common means, how it works in practice and how it compares to joint tenancy.

Tenants in common is a form of co-ownership where two or more people each own a separate, distinct share of a property. These shares can be equal or unequal depending on what you agree.

Unlike joint tenancy, your share doesn't automatically pass to the other owners when you die. Instead, you can leave it to whoever you choose in your will. Each tenant in common has:

• A defined percentage of ownership (e.g. 60/40 or 70/30)
• The right to leave their share to someone in their will
• Equal rights to occupy the entire property regardless of ownership percentage
• Individual responsibility for their share

For example, if you own 60% of a property worth £300,000, your share is worth £180,000. If the property is sold, you receive 60% of the net proceeds after the mortgage is repaid.

When tenants in common makes sense:

• Either co-owner has children from a previous relationship
• The co-owners are unmarried or not in a civil partnership
• Unequal contributions are made to the deposit, mortgage payments or property maintenance
• One co-owner doesn't want their share to pass automatically to the surviving owner
• Business partners are buying together
• Parents are contributing to help a child buy but want to protect their investment
• Co-owners want to manage potential inheritance tax on their estate

When you buy as tenants in common with a mortgage, there's an important point to understand: regardless of your ownership percentage, each of you is liable for the full mortgage amount.

If you own 40% of the property but your co-owner stops paying their share of the mortgage, the lender can still pursue you for the entire debt. This is called "joint and several liability".

What lenders need to know

When applying for a mortgage as tenants in common, your lender will:

• Assess all applicants' income and credit history
• Hold each person responsible for the full mortgage debt
• Typically require all owners to be named on the mortgage
• Want to see your Declaration of Trust (see below)

This is why it's important to have a clear written agreement about how mortgage payments will be split, especially if ownership shares are unequal.

A Declaration of Trust (or Trust Deed) is a legal document that records:

• Each person's ownership percentage
• How much each person contributed to the deposit
• How ongoing costs will be split
• What happens if someone wants to sell their share
• How disputes will be resolved

This document protects everyone involved and is particularly important when contributions are unequal. Your conveyancing solicitor will prepare this for you, and it should be registered with the Land Registry.

Without a Declaration of Trust, the legal assumption is that you own equal shares, regardless of who contributed what. This could cause serious problems if you separate or one person wants to sell.

Joint tenants is the other form of co-ownership. With joint tenancy, all owners hold the property together as one entity. No one owns a specific share - you all own everything together.

The key difference is survivorship: if one joint tenant dies, their interest automatically passes to the surviving owner(s). You cannot leave your share to someone else in your will because technically, you don't own a distinct "share" to leave.

When joint tenancy makes sense:

• Married couples
• Civil partnerships
• Long-term partners who want their share to pass automatically to each other

If the property is sold while everyone is living, the proceeds are typically split equally, though this can be challenged in certain circumstances like divorce proceedings.

From tenants in common to joint tenants

You can change to joint tenancy, but all tenants in common must agree. You'll need to:

• Update or create a trust deed
• Complete form RX3 if there are restrictions on the property
• Submit the paperwork to HM Land Registry (no fee)

From joint tenants to tenants in common

This is called "severing the joint tenancy" and you can do this without the other owners' agreement. The process involves:

• Serving written notice of severance to the other joint tenants (unless they've agreed)
• Completing form SEV to register restrictions
• Submitting everything to HM Land Registry (no fee)

A conveyancing solicitor can handle this process for you and ensure it's registered correctly.

Whether you choose tenants in common or joint tenancy, having the correct legal documentation protects everyone involved.

For tenants in common, you should:

• Have a Declaration of Trust prepared by a solicitor
• Make a will specifying what happens to your share
• Register a restriction at the Land Registry (prevents sale or mortgage without solicitor certification)
• Keep the Declaration of Trust updated if circumstances change

Your conveyancing solicitor will guide you through setting up the right structure for your situation and ensure everything is properly registered.

Whether you're buying as tenants in common or joint tenants, our conveyancing team can help you choose the right ownership structure and ensure it's legally sound. Call us on or get a quick quote to get started.