Definition
Tenants in common is a property ownership structure where each co-owner holds a separate, identifiable share that can be left to beneficiaries in their will, rather than automatically passing to surviving co-owners.
Understanding this ownership type is crucial for estate planning because it allows you to control who inherits your property share—particularly important for blended families and unmarried couples.
What Does Tenants in Common Mean?
Under the Law of Property Act 1925, tenants in common are co-owners who each hold a distinct share of a property. These shares can be equal (typically 50/50) or unequal (such as 60/40 or 75/25), depending on what the co-owners agree. The fundamental difference from joint tenants is that there is no right of survivorship—when you die, your share becomes part of your estate and passes according to your will or, if you die intestate (without a will), according to intestacy rules. The legal title is held as joint tenants, but the beneficial interest (the actual economic ownership) is held as tenants in common, recorded at HM Land Registry with a Form A restriction.
In practice, this ownership structure works as follows: When co-owners purchase property, they decide their ownership shares, usually based on financial contributions or agreement. If shares are unequal, a Declaration of Trust documents these percentages to avoid future disputes. When one co-owner dies, probate is required for their share, which then transfers to beneficiaries named in their will. The surviving co-owners continue to own their shares unchanged. For example, Emma and James own their £450,000 home as tenants in common 50/50. Emma's will leaves her 50% share (£225,000) to her two children from her first marriage. When Emma dies, James retains his 50% share and continues living in the property, while Emma's children inherit her £225,000 share as she intended.
Tenants in common is particularly important for blended families where parents want to protect children from previous relationships while providing security for their current spouse. It works perfectly with life interest trusts—you can leave your share in trust, giving your spouse the right to live in the property during their lifetime while ensuring your children ultimately inherit. The structure is also essential for unmarried couples, who lack the automatic inheritance rights married couples have, and for co-owners contributing unequal amounts who want ownership to reflect their investment. Without tenants in common, many people inadvertently hold property as joint tenants, where the entire property automatically passes to the survivor, potentially disinheriting children from first marriages.
Common Questions
"What happens to my share of the property if I die as a tenant in common?" When you die as a tenant in common, your share of the property does not automatically pass to the other co-owners. Instead, your share forms part of your estate and passes according to your will (or intestacy rules if you die without a will). This means you can leave your share to anyone you choose—children, family members, or other beneficiaries.
"Can tenants in common have unequal shares of a property?" Yes, tenants in common can hold unequal shares of a property. While 50/50 ownership is common, shares can be split in any proportion (e.g., 75/25 or 60/30/10 for three owners). This is often used when co-owners contribute different amounts to the purchase price or want to reflect varying financial stakes in the property.
"Should unmarried couples and blended families own property as tenants in common?" Yes, tenants in common is strongly recommended for unmarried couples and blended families. It allows each person to leave their share to their chosen beneficiaries (such as children from a previous relationship) rather than the share automatically passing to the surviving co-owner. This provides crucial protection for children's inheritance while still allowing a surviving partner to continue living in the property if structured correctly with a life interest trust.
Common Misconceptions
Myth: Tenants in common shares are automatically based on financial contributions
Reality: Ownership shares do NOT automatically reflect financial contributions. In the absence of a Declaration of Trust or other written agreement, UK courts presume equal shares regardless of who paid what. If Sarah pays the entire £300,000 deposit but both names are on the title as tenants in common without documentation, the law assumes 50/50 ownership. Always document unequal shares in writing with a Declaration of Trust.
Myth: Being tenants in common means you need a special type of mortgage
Reality: There is no such thing as a "tenants in common mortgage." You obtain a standard residential mortgage just like any other property purchase. Your solicitor handles the ownership structure separately during the conveyancing process by registering the appropriate restriction with the Land Registry. However, mortgage lenders may require additional documentation (like a Declaration of Trust) if shares are unequal.
Related Terms
- Joint Tenants: The contrasting ownership structure where co-owners share the entire property and the right of survivorship means it automatically passes to survivors upon death.
- Severance of Tenancy: The legal process of converting from joint tenants to tenants in common, particularly important for married couples doing inheritance tax planning.
- Property Ownership: The broader category of ownership structures, with tenants in common being one specific form available in England and Wales.
- Share of Property: The specific, identifiable percentage that each tenant in common owns, which forms part of their estate on death.
- Blended Family: A key scenario where tenants in common enables parents to protect children from first marriages while providing for new spouses.
Related Articles
- Property and Estate Planning: Explains how property ownership choices affect inheritance outcomes, with tenants in common as the primary mechanism for controlling property inheritance when co-owning.
- Protecting Property for Blended Families: Details protection strategies where choosing tenants in common over joint tenants is essential for ensuring children from previous relationships inherit.
- Unmarried Couples and Property Rights: Covers why tenants in common is the recommended ownership structure for cohabitees who want to protect financial contributions and chosen beneficiaries.
- Estate Planning for Cohabiting Couples: Shows how property ownership structure interacts with wills, and why holding as tenants in common ensures your will controls inheritance of your share.
- Wills for Blended Families
Need Help with Your Will?
If you own property jointly—particularly in a blended family or as an unmarried couple—understanding tenants in common is essential for creating a will that achieves your inheritance goals. Your property ownership structure determines whether your will can control what happens to your share.
Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete, legally binding will plus three expert guides. Preview your will free before paying anything—no credit card required.
Legal Disclaimer:
This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.