Tenancy in Common: What It Is, How It Works, and What to Watch For

When dealing with Tenancy in Common, a type of co‑ownership where each person holds a distinct, undivided share of a property. Also known as TIC, it lets owners sell, bequeath or mortgage their share without needing permission from the others. Joint ownership and Shared ownership are related concepts, but they operate under different rules and legal expectations.

The core of tenancy in common is the idea of ownership shares. Each co‑owner can have an equal 1/3, 1/4, or any proportion that matches their contribution. This flexibility is handy when friends pool money for a buy‑to‑let, or when siblings inherit a family home and want to keep it together. Because shares are separate, one party can borrow against their slice, rent it out, or transfer it to another person. However, that freedom also brings complexity – especially when the co‑owners’ goals drift apart.

Key Considerations for Tenants in Common

First, think about how decisions get made. Unlike joint tenancy, where the surviving owner automatically inherits the whole property, tenancy in common requires a clear agreement on who can approve major actions like selling the whole building or refinancing the mortgage. Without a written deed or a co‑ownership agreement, disputes can quickly turn costly. Setting out voting thresholds, cost‑sharing formulas, and exit strategies at the start saves headaches later.

Second, inheritance rules matter a lot. When a co‑owner dies, their share becomes part of their estate and can be passed to anyone in their will – not necessarily the remaining owners. This can introduce strangers into a once‑tight circle, leading to legal battles or forced sales. Many people use a “right of first refusal” clause, giving the surviving owners the chance to buy the departed share before it goes to an outsider.

Third, financing differs from joint ownership. Lenders view each share separately, so the credit score and income of each co‑owner affect their ability to borrow against the property. If one owner defaults, the bank may target that individual's slice, which can jeopardize the whole investment. Understanding the risk profile of every partner is crucial before signing any mortgage.

Fourth, tax implications can be tricky. Rental income must be divided according to each share, and expenses like repairs or council tax are split the same way. When a share is sold, capital gains tax applies to the seller based on their proportion of the profit. Keeping meticulous records helps avoid surprises at tax time.

Finally, consider the day‑to‑day management of the property. Who handles maintenance requests? Who pays the utility bills? A simple shared‑ownership checklist can assign these tasks and prevent one party from feeling overloaded. Many co‑owners set up a joint bank account for recurring costs, with each person contributing their share each month.

These practical points mirror the themes you’ll see across our collection of articles. For example, the post on Joint Ownership Risks dives deeper into the legal tangles that can arise when partners don’t map out exit routes. The guide titled How Many Shares Make You an Owner? explains the math behind property shares and how that translates into voting power. Our piece on Shared House Meaning broadens the discussion to co‑living arrangements, showing how tenancy in common fits into the larger world of shared ownership models.

What you’ll discover next is a mix of real‑world case studies, step‑by‑step checklists, and expert tips that help you navigate tenancy in common with confidence. Whether you’re buying a holiday retreat with friends, inheriting a family home, or simply exploring co‑ownership as an investment strategy, these articles give you the tools to protect your interests and make informed decisions.

Ready to dig into the details? Browse the posts below to see how tenancy in common intersects with joint ownership, shared ownership, property shares, inheritance planning, and the legal safeguards you need. Each article adds a piece to the puzzle, turning a complex legal structure into a practical, manageable option for modern property buyers.