Tenants in common

Tenants in common is a form of co-ownership in which two or more people each hold a distinct, separately defined share of a property. Those shares can be equal or unequal, one owner might hold 70%, another 30%, and each owner's share forms part of their own estate. As GOV.UK explains, when you own as tenants in common you can leave your share to whoever you choose in your will, rather than it passing automatically to the surviving co-owner. This is the defining difference from joint tenancy. The arrangement is governed by the Trusts of Land and Appointment of Trustees Act 1996, and registered at HM Land Registry through what is known as a Form A restriction.

How shares are held

Each tenant in common holds what is called a beneficial interest in the property, a legal entitlement to a defined percentage of its value, rather than to any physical portion of the building. Shares are recorded in a declaration of trust, also called a deed of trust, which sets out precisely what each co-owner is entitled to. If no declaration is made and ownership is not specified, HMRC and the courts will generally assume equal shares.

Shares can be agreed in any proportion. This makes tenants in common particularly useful when co-owners contribute different amounts at purchase. A landlord who puts in 60% of the deposit can hold a 60% beneficial interest, with this reflected formally in the declaration of trust and notified to HMRC.

No right of survivorship

Unlike joint tenancy, tenants in common carries no right of survivorship. When one owner dies, their share does not automatically pass to the remaining co-owner. Instead, as HMRC's Capital Gains Manual at CG70502 confirms, the deceased's fractional share passes to their personal representatives and is distributed under the terms of their will, or under the rules of intestacy if no will exists. This makes a valid, up-to-date will essential for any landlord holding property as a tenant in common.

The Form A restriction

When a property is held as tenants in common, HM Land Registry enters a Form A restriction on the title register, in the Proprietorship Register. The restriction wording reads: "No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court." If you see this wording on your title register, the property is held as tenants in common rather than as joint tenants. If no restriction appears, it is likely held as joint tenants, though checking the original transfer (TR1) form or your conveyancing documents is the reliable way to confirm.

Why tenants in common matters for landlords

From working with self-managing landlords across the UK, the choice of ownership structure rarely feels urgent at purchase but consistently matters when circumstances change, a business relationship ending, a co-owner's death, or a desire to pass a share to children rather than a partner.

For landlords, tenants in common offers three practical advantages over joint tenancy: the ability to hold unequal shares that reflect real capital contributions; the freedom to leave your share to named beneficiaries in your will rather than the surviving co-owner inheriting automatically; and, for married couples or civil partners with rental income split unequally, the option to file HMRC Form 17 to have income taxed according to actual beneficial ownership rather than the default 50:50 assumption.

Landlords who hold buy-to-let property as tenants in common should store their declaration of trust and ownership documents securely so they are accessible if the ownership structure needs to be evidenced during a sale, remortgage, or probate process.

Changing from joint tenants to tenants in common

The process is called severance of joint tenancy. It converts ownership from a single, undivided interest shared by all co-owners into separate, distinct shares. Severance can be done unilaterally, one owner does not need the agreement of the others to sever, and takes effect by serving a notice of severance on the other co-owners, then registering a Form A restriction with HM Land Registry using form SEV or form RX1. There is no fee for this registration.

Once the joint tenancy is severed, shares are equal by default unless a declaration of trust specifies otherwise. Many landlords sever the joint tenancy at the same time as executing a new declaration of trust to reflect unequal contributions or to set up income splitting for tax purposes.

Note that this is distinct from a joint tenancy agreement, where multiple tenants share one rental contract for the same property, a separate concept under tenancy law.

For a full comparison of both ownership structures, including how to choose between them for a buy-to-let portfolio, see our guide to tenants in common versus joint tenants.

Frequently asked questions

Can a tenant in common sell their share without the other owner's agreement? 

In principle, yes, a tenant in common can sell or transfer their beneficial interest without the consent of the other co-owners, because each share is a separate legal asset. In practice, finding a buyer for a partial share in a residential property is difficult, and most lenders will not offer a mortgage against it. Selling the whole property still requires the agreement of all co-owners.

What happens if a tenant in common dies without a will? 

Their share of the property forms part of their estate and passes under the rules of intestacy. Depending on their family situation, this could mean the share passes to a spouse, civil partner, children, or more distant relatives, not necessarily to the surviving co-owner. This is why a will is essential for anyone holding property as a tenant in common.

Does being tenants in common affect rental income tax? 

For married couples and civil partners, HMRC's default is to tax rental profits equally (50:50) regardless of ownership split. To be taxed according to actual beneficial shares, both owners must complete a HMRC Form 17 declaration and send it with a copy of the declaration of trust to HMRC within 60 days. Unmarried co-owners are taxed according to their actual shares without needing Form 17.

How do I know if my property is held as tenants in common? 

Check the Proprietorship Register section of your title register. If a Form A restriction appears, the property is held as tenants in common. If no restriction is present, it is likely held as joint tenants, but you should check the TR1 transfer form or take advice from a conveyancer to confirm.