Journal
Tenant in Common: What London Property Buyers Should Know
By Seymont London ·
When you're buying property with someone else in London, understanding whether to hold the title as a tenant in common or joint tenant can save your family thousands and protect your investment. A tenant in common arrangement means each owner holds a distinct, separate share in the property—shares that can be unequal and passed on through your will, rather than automatically transferring to the surviving owner.
How Tenant in Common Ownership Works
Under a tenancy in common structure, you and your co-owner(s) each hold a defined percentage of the property. This might be 50-50, but it's just as common to see 70-30, 60-40, or any other split that reflects your actual contributions. Each owner's share is recorded at HM Land Registry when the property is registered, and crucially, each share forms part of your individual estate.
This matters enormously if you're buying with a friend, business partner, or family member other than a spouse. We've worked with clients purchasing investment flats together where one contributed the deposit and the other secured the mortgage—a tenant in common arrangement let them formalise that 65-35 split from day one. It's also the structure many unmarried couples choose when contributions are unequal, particularly in high-value areas we cover like Kensington where deposit gaps can be substantial.
Tenant in Common vs Joint Tenants: The Key Difference
The alternative—joint tenancy—means you own the whole property together as a single legal entity, with no distinct shares. When one joint tenant dies, their interest automatically passes to the survivor(s) through the right of survivorship, regardless of what their will says. For married couples and civil partners buying a family home, this is often ideal and straightforward.
But a tenant in common structure is essential when you want control over who inherits your share. Your portion of the property passes according to your will (or intestacy rules if you haven't made one), not automatically to your co-owner. We regularly recommend this to clients buying with siblings to keep inherited family wealth within their own branch of the family, or to parents helping adult children onto the ladder who want to protect their contribution for other heirs.
When Our Team Recommends Tenancy in Common
Over the years, we've seen this ownership structure work particularly well in four situations. First, unequal financial contributions—if one buyer is putting in 70% of the purchase price for a property in /property-for-sale/kensington, a tenant in common split protects that investment and avoids HMRC gift complications down the line.
Second, family estate planning—parents buying with children, or siblings purchasing together, often need to ring-fence their share for their own dependants. Third, business or investment partnerships, where co-investors want clear exit terms and the ability to sell or bequeath their stake independently. Fourth, unmarried couples, especially where there's a significant income or wealth disparity, benefit from the clarity and protection this structure provides. Our experience in /estate-agents/kensington has shown that solicitors almost always recommend tenancy in common for these scenarios, and for good reason.
Changing Your Ownership Structure
You're not locked in forever. If you currently own as joint tenants but your circumstances have changed—perhaps you've separated, received an inheritance, or remortgaged with unequal contributions—you can sever the joint tenancy and convert to tenants in common. One owner can do this unilaterally by serving a notice of severance, though it's far better to agree it together and instruct your solicitor to update the Land Registry records properly.
The process is relatively straightforward and inexpensive, typically a few hundred pounds in legal fees. We often see this happen after relationship breakdowns or when one co-owner wants to update their will and realises the current structure won't honour their wishes. If you're considering this, checking /sold-prices in your area first gives you a current valuation context for calculating fair shares, which becomes important if your financial contributions have shifted since purchase.
Protecting Your Interest
Once you hold property as tenants in common, three things matter: document everything, update your will, and communicate clearly with co-owners about succession plans. Keep records of deposits, mortgage payments, renovation contributions, and any agreed adjustments to shares over time. These records become vital evidence if disputes arise or HMRC queries the arrangement.
Make sure your will explicitly states who should inherit your share—without one, intestacy rules apply and your share may not go where you'd expect. If you're buying with someone other than a spouse, consider a cohabitation agreement or declaration of trust that sets out what happens if one person wants to sell, dies, or can't pay their share of costs. Our clients who take these steps from the outset avoid the painful, expensive disputes we sometimes see when circumstances change unexpectedly. For a clear picture of what your share might be worth today, our /valuation service provides London-specific market insight that helps with estate planning and financial decisions.
Frequently asked
- Can I sell my share as a tenant in common without the other owner's permission?
- Legally yes, you can sell or transfer your share, but practically it's complex because few buyers want to own property with a stranger. Your co-owner typically has first refusal, and if the property has a mortgage, the lender's consent will be needed. Most tenancy in common sales happen by mutual agreement to sell the whole property.
- Do tenants in common need separate conveyancing solicitors?
- Not necessarily for the purchase, though it's advisable if your interests might conflict—for example, if contributions are very unequal or you're not in a relationship. You should definitely have separate solicitors if you're severing a joint tenancy after a relationship breakdown, as you each need independent advice on the financial implications.
- What happens if one tenant in common stops paying their share of the mortgage?
- The mortgage lender can still pursue both owners for the full debt if you're both named on the mortgage, regardless of your ownership shares. The paying owner can cover the shortfall and potentially claim it back through court or offset it against the defaulting owner's share when the property is sold. This is why a declaration of trust setting out payment responsibilities is so valuable.
- Does tenancy in common affect stamp duty or capital gains tax?
- Not directly. Stamp duty is charged on the purchase price regardless of ownership structure. For capital gains tax, each tenant in common is assessed individually on their share of any gain when the property is sold, with each owner entitled to their own annual CGT exemption (£3,000 for 2024/25 according to HMRC). This can actually be tax-efficient for investment properties.
- Can married couples be tenants in common?
- Absolutely. While joint tenancy is more common for married couples buying a family home, tenancy in common makes sense if you're bringing unequal assets to the marriage, have children from previous relationships you want to provide for, or own the property partly for business or investment purposes. You can switch between structures as your circumstances change.