If you are a joint tenant, you may be wondering whether it is possible to change the ownership of your property to tenants in common by severing the former to create the latter. Joint tenancy means both parties hold equal rights to the whole property, which creates a right of survivorship and means neither party can gift their interest to a third party, even in a will. Let’s take a look at what happens in the event of a severance of joint tenancy.
How to sever a joint tenancy
How to sever a joint tenancy depends on whether all the owners agree. If they do, you need to download and complete a form SEV to register a form A restriction. Check which supporting documents are needed, add them to the form, and send them to HM Land Registry’s Citizen Centre.
If the parties do not agree, the person who wishes to change the arrangement will need to serve a notice of severance on the other owner or owners. Proof of service is very important. A conveyancer can help you with this, and you will find help online provided by companies such as Parachute Law.
What are the important benefits of severing a joint tenancy?
One of the most important aspects is that you can gift your share of the property to whoever you wish, such as your children from a previous relationship. Another thing you could do is put your share in trust. This would mean that even if you predecease the other owner or owners and they change their wills, your share will go to the beneficiaries you have chosen.
Can you sever the property in unequal shares?
Yes, the owners may have made different contributions to the funds used to purchase the property; in this case, it may be fairer to share the property in unequal shares under a tenancy in common. Normally, this would involve creating a declaration of trust to evidence the shares the different parties own in the property.
