Have you received a notice about severing joint tenancy and wondered what it means for your property ownership? Let's demystify the process and shed light on the differences between joint tenancy and tenancy in common.
Understanding Joint Tenancy and Tenancy in Common
Joint Tenants: As joint tenants, you and your co-owner have equal rights to the whole property. In the event of death, the property automatically transfers to the surviving owner.
Tenants in Common: With tenants in common, you can own different shares of the property. Property shares don't automatically transfer to the other owners upon death, allowing you to pass on your share through your will.
Changing Your Type of Ownership
- From Joint Tenants to Tenants in Common: Typically done during divorce or separation when you want to leave your share of the property to someone other than your spouse or partner.
- From Tenants in Common to Joint Tenants: Usually desired when you're married and want equal rights to the property.
How to Change Ownership
- Severing the Joint Tenancy: This involves serving a written notice of change, known as the severance. It can be done without the other owner's cooperation and is recorded at the Land Registry.
- Changing from Tenants in Common to Joint Tenants: Requires agreement among the owners and the preparation of a trust deed by a qualified solicitor or conveyancer.
Don't Panic
Receiving a Notice of Severance doesn't mean losing ownership or facing new mortgage responsibilities. It simply reflects a change in how the property passes in the event of an owner's death. However, it's crucial to review or prepare your will to protect your share of the property for your next of kin.
Remember, whether you're joint tenants or tenants in common, divorce settlement prospects remain unaffected, as the court has the power to regulate ownership of matrimonial property.
Ensure you have an up-to-date, valid will, especially if you're considering severing joint tenancy. Additionally, keep in mind that divorce invalidates existing wills, necessitating the creation of a new one post-divorce.
