The Nigerian-British musician died on Thursday after contracting pneumonia while recovering from coronavirus.
Ty was known for a witty, mature style that owed more to the old-school US rappers than the grittier street sounds of London.
In 2004, Ty's second album, Upwards, was nominated for the Mercury Prize alongside Amy Winehouse, The Streets and eventual winners Franz Ferdinand.
Ty contracted coronavirus earlier this year, and a fundraising page set up in April said he had been "put in a medically induced coma to temporarily sedate to help his body receive the appropriate treatment".
He later left intensive care after his condition seemingly improved - but on Thursday, his press team confirmed he had died.
Writing on the fundraising page, Ty's friend Diane Laidlaw confirmed he had contracted pneumonia while recovering from coronavirus.
"Ty's condition had been improving but last week while on a normal ward he had contracted pneumonia which worsened his recovery and ultimately Ty's body couldn't fight back anymore," she wrote.
His death was mourned by stars including Ghetts and Roots Manuva.
DJ Charlie Sloth called him "a friend, a role model and a true foundation to UK rap".
"This brother here was truly a good person. Sad to see you ascend from this realm so soon," wrote Posdnuous, from US rap trio De La Soul, who appeared on Ty's third album, Closer, in 2006.