When a couple buys a property together, it’s typical to do so as joint tenants, meaning that each person owns the property wholly and jointly, and immediately transfers ownership to the other if one person dies. The arrangement is typical when couples buy a property.
But circumstances can change, and sometimes severance is needed to alter the joint tenancy to a ‘tenants in common’ arrangement. Here’s what you need to know.
What is a severance of joint tenancy?
A severance of joint tenancy happens as a legal process when two house owners change their property ownership status to tenants in common, after being joint tenants. Usually, both parties will be in agreement, but legally, only one person needs to serve notice on the other, whether the second party is in agreement or not. This often happens when a couple separates or divorces.
What is the process for carrying out a severance of joint tenancy?
The process for severance of joint tenancy is relatively straightforward and can easily be carried out with the help of a lawyer such as https://www.parachutelaw.co.uk/severance-of-joint-tenancy. The process involves:
1. Agreeing on the division of ownership under the new arrangement, e.g. whether it will be a 50/50 split, 75/25 or so forth. A solicitor can help with this and make the necessary legal records.
2. Serving the official notice of joint tenancy severance to all other owners. This must be signed, or the onus is on you to provide evidence (such as a recorded postal delivery receipt) that the notice was served. Again, your solicitor can assist here.
3. Completing the SEV form and sending it to the Land Registry, with the signed acknowledgement. The Land Registry will then enter the title deed restriction. The entire process can take as little as a week.