If you’re looking to change the way you own your family home read on. This week Prestige Tax and Trust Services explains how to convert joint tenancy to tenants in common.
Change the Way You Own Your Home
As life passes you by, things change. You may meet that special someone, and decide to share a life with them. You may leave that special someone, and decide you no longer want anything to do with them. You may have children and want to protect their futures… the list goes on and on.
As such, you may want to change the way you own your home. You may want to transfer ownership to a partner, or away from them. You may want to make it easier for your children to inherit your home when you pass away. This means you may need to know how to convert joint tenancy to tenants in common, as these are the two legal frameworks for home ownership in the UK.
Joint Tenancy vs. Tenants in Common
Yet in order to know whether you need to make this change, first you need to know the capabilities and drawbacks of each type of home ownership.
Joint tenancy provides all owners with equal rights to the property. The property also transfers into the hands of the other owners automatically when you die. However, you can’t pass on ownership of your property in a will if you have a joint tenancy.
Tenants in common allows you to own different shares in your home i.e. you own 60%, your partner 40%. It also allows you to pass the shares of the property you do own on to others in your will. However when you operate under a tenants in common framework, the property doesn’t automatically go to the other owners if you die.
Severance of Joint Tenancy
Do you want to ensure that you can pass on your share of a property to your children when you die? Do you want to change ownership of a property following a divorce? In cases like these where you have a joint tenancy, you will need to convert it to tenants in common.
In order to do so, you need to go through a process called ‘severance of joint tenancy.’ This requires you to apply for and fill out a form of restriction. Once you have done so, return it to the Land Registry and you have converted your joint tenancy to tenants in common.
Prestige Tax and Trust Services
Converting a joint tenancy to tenants in common is a complex legal process. In order to ensure you complete it effectively, let Prestige Tax and Trust Services lend you a helping hand. We have the legal expertise of home ownership law you need to ensure you can change the way you own your home effectively.