Are you looking to change the way you own your home? If so read on, as this week Prestige Tax and Trust Services reveals how to change tenants in common to joint tenancy.
Tenants in Common vs. Joint Tenancy
According to UK law there are two frameworks for home ownership. These are known as tenants in common and joint tenancy.
Tenants in common allows each person who owns the property to hold different shares, as well as to pass their shares on in a will to a beneficiary when they die. However, it doesn’t allow them to pass on their shares to a beneficiary automatically when they pass away.
Joint tenancy comes with different capabilities and drawbacks. Instead of owning shares, each person has equal rights to the whole property. They can’t pass ownership on via a will, however said ownership does pass on to the other owners automatically when they die.
Why Would You Want to Change Tenants in Common to Joint Tenancy?
Therefore if you’re looking to change the way you own your home, you need to know how to change joint tenancy to tenants in common or how to change tenants in common to joint tenancy.
Why would you want to do the latter? Well, say you’ve just gotten married. You both lived in the property before and you owned separate shares in it under a tenants in common framework. Say you owned 60% and your partner owned 40%. Now you’re married and you want to hold equal ownership of your property. In order to own the property equally you would need to make the switch to a joint tenancy.
A Step-by-Step Guide to Changing Tenants in Common to Joint Tenancy
To make the switch you need to:
- Secure the agreement of every other tenant.
- Fill out an updated or new trust deed.
- Download and complete the form to cancel a restriction, if one has been registered.
- Prepare any necessary supporting documents.
- Send all documents to the Land Registry’s Citizen Centre, which is free.
Supporting documents must be included to prove three thing. No one except the named joint owners hold shares in the property. None of the joint owners is mortgaging their share of the property, has a charging order form creditors or is being made bankrupt. All joint owners now hold ownership of the property as beneficial joint tenants.
There are four ways to fulfil these requirements. Include one of the following in your supporting documents:
- The original or a certified copy of the new or updated trust deed, signed by every single owner.
- The certified list of transfer. This shows that all owners who hold shares in the house have transferred said shares to the new joint tenants.
- A certificate from a conveyancer showing that all owners with property shares have signed the new trust deed.
- Either a declaration prepared by your conveyancer or a document you can prepare yourself called a statement of truth. This must be submitted in writing, include the words “I believe that the facts and matters contained in this statement are true” as well as hold the signature of the person who makes it.
Let Prestige Tax and Trust Services Help You Make the Change
Changing tenants in common to joint tenancy is a complex legal process. If you want to ensure you alter the ownership of your home effectively, why not let Prestige Tax and Trust Services help you make the change? We have the legal expertise you need to ensure you can change from tenants in common to joint tenancy as smoothly as possible.