Are tenants in common equal or unequal shares?

Tenants in common own separate shares, which are usually unequal, although it is possible to be tenants in common with equal shares. A benefit of being tenants in common, even if you own the property equally, is that you can bequeath your share to whoever you like in your will. You could also execute a floating deed of trust whereby those shares can adjust if you contribute toward the property unequally (if one owner stops paying the mortgage, for example, and the other has to cover the whole repayment each month).

A cartoon person stands on top of their percentage share of a house. SAM Conveyancing explains how you can have unequal shares in a property as tenants in common

Get a Deed of Trust to set out your shares in your property, as well as your responsibilities toward outgoings and plans for sale. Severance of joint tenancy available for an additional fee.

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Can you have unequal shares in a property?

by:

Andrew Boast

Last Updated: 22/03/2023

Read by:

6,829

4 min read

Can you have unequal shares in a property? Yes you can. In England & Wales unmarried couples normally buy a property as tenants in common which means they each individually own a separate interest in the property and this is normally in unequal shares. Married couples buy as Joint Tenants which means they own the property 100% together.

Buying as tenants in common means that you can own unequal shares in the property. If you have a Joint Mortgage with Unequal Shares then you should look to draft a Deed of Trust to protect your individual interests in the property including:

your individual deposit;
how much you individually pay towards the mortgage; and
what happens if someone moves sell.

A Deed of Trust is a legal agreement normally drafted during the purchase process, however you can set out your intentions after you buy. We provide a specialist Deed of Trust service so please call us if you need any help on 0333 344 3234 (local call charges apply).

Sharing unequal amounts - what happens if you fall out?

The benefits of buying a property with someone else are clear; bigger deposit, increased salary for mortgage calculation and ability to share the costs of living together. The downside is what happens if you fall out and need to leave? This is an awkward situation anyway, but how do you approach getting out your share of the property, especially if you've put in more than they have? It situations like this you'll be thankful to have drawn up a legal agreement at the outset that states who owns what.

If you don't have a legal agreement and there is an argument about how much you own, then you could have a very long drawn out legal battle.

Don't worry if you haven't got a legal agreement in place and you have already bought the property because you can get this drawn up now and it'll still protect your interests. We can help draw you up an agreement so please call us on 0333 344 3234 to discuss this further.

Can you have unequal shares in a property

Legal Agreement for joint owners - protects more than just money!

When owning a property with someone else, whether friend, family member or a flat mate, you should have a legal agreement drawn up to protect your interests - especially if you own the property in unequal shares. The legal agreement should cover if:

You fall out;
Someone dies or disappears;
You get repossessed (your share of anything left once the mortgage is repaid);
Someone becomes bankrupt (Read about Joint Owners in Bankruptcy);
You leave, how much you benefit from any increase in the property's value.

Here's an example of owning a property as tenants in common (unequal shares)

When you buy a property in a group as tenants in common (unequal shares) you choose a bedroom for yourself and the rest of the property is shared. The share of the initial financial investment is based on how much you have contributed to the purchase.

Example of an unequal deposit

Jane, Michael & Michelle are buying a £250,000 house with a 10% deposit. The stamp duty is £2,500, solicitor fees £529 and Land Registration is £135. The total cost is £28,164. This is how their unequal shares are set out:

	Invested	Share
Jane	£10,000	35.5%
Michael	£5,000	17.7%
Michelle	£13,164	46.8%

In Michael’s case, he will own a share of 17.7% and if the property increases by £25,000 then his share will be £4,425 plus his original deposit of £5,000; totalling £9,425. This doesn't factor in any repayment of the mortgage which would also be split.

Is buying unequal shares in a property with someone else a good idea?

Yes it can be especially if it is the only way you can afford to buy a property. By joining forces with a partner, friend, flat mate or family member you can pool your resources to make your financial position stronger; either a greater combined salary for the mortgage multiples or a larger sized deposit. Additionally, there are other advantages to owning a property as tenants in common and in unequal shares - you can use it, for example, to make your tax planning more efficient as a married couple.

One thing that is clear is that when owning a property jointly with someone else as tenants in common (unequal shares) you need a robust joint ownership agreement between you to protect your individual share of the property. We use our Deed of Trust as a legal document to protect people when buying together as it clearly sets out the ownership between each of the parties involved regardless of how this is divided.

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Written by: Andrew Boast

Andrew Boast FMAAT is a qualified accountant, conveyancing specialist and author with over 25 years of experience in the UK property sector. Since beginning his career in 2000 within established SRA and CLC-regulated conveyancing solicitor firms, Andrew has overseen the legal journeys of more than 75,000 clients.

He is the author of the property guide 'How to Buy a House Without Killing Anyone' and a frequent contributor to mainstream UK media on legislative updates, property law, first-time buyer guides, conveyancing best practices, and stamp duty changes. Andrew specialises in resolving complex title issues, property conflict disputes, and property tax options, streamlining the enquiry process to reduce transaction times and maintaining a client-friendly focus.

Reviewed by: Caragh Bailey

Caragh Bailey is a Lead Property Content Specialist at SAM Conveyancing, having joined the firm in 2020. With a portfolio of over 150 technical conveyancing, house survey and mortgage guides, she has become a primary authority on the end-to-end sale and purchase process.

Caragh specialises in complex legal workflows, including Help to Buy redemptions, equity transfers, shared ownership structures, trust deeds for tax planning, and joint ownership disputes. Her expertise extends to leasehold reform and RICS home surveys, where she provides clear, factual guidance on independent legal advice for specialist mortgage products and intricate ownership structures.

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