Switching from Joint Tenants to Tenants in Common

6 March, 2025 4 minutes reading time

Usually, couples who buy a house together do so as joint tenants. This means they both own the whole property, and ownership automatically transfers to the survivor when one dies.

However, circumstances may lead couples to consider changing ownership to ‘tenants in common’. And how you hold a property can have significant legal and financial implications. So, if you’re contemplating this change, it’s essential to understand the key differences between these ownership structures and the steps involved.

Understanding the Basics: Joint Tenants vs. Tenants in Common

Joint tenancy, commonly preferred by couples, means that all joint tenants hold the entire property equally. A crucial feature of this arrangement is the “right of survivorship.” This means that if one joint tenant passes away, their share automatically transfers to the surviving joint tenant(s), regardless of any will. As a result, you cannot leave your share of the property to someone else through your will.

In contrast, tenants in common allows each tenant to hold a distinct share of the property, which does not have to be equal among owners. There is no right of survivorship, enabling each tenant to designate how their share is distributed according to their will. This arrangement is often preferred by unmarried couples, friends, or family members who may have contributed different amounts to the property purchase or wish to pass on their share to specific beneficiaries.

Reasons to Switch to Tenants in Common

There are several compelling reasons to consider changing from joint tenancy to tenants in common.

1. Proportional Ownership: If you contributed a larger portion of the purchase price, you can reflect this contribution by holding a more significant percentage as a tenant in common.

2. Estate Planning: You may wish to leave your share of the property to someone other than the co-owner(s), such as children from a previous relationship.

3. Flexibility for Inheritance Tax Planning: This structure can offer enhanced options for managing inheritance tax.

4. Relationship Changes: In cases of separation, you may prefer a clear division of assets, which can be easily achieved through tenants in common.

5. Business Assets: Properties that serve as business assets are often held as tenants in common.

Severing a Joint Tenancy

To change from joint tenancy to tenants in common, you must “sever” the joint tenancy. There are several ways to sever a joint tenancy, including:

• Written Notice: Serve a written notice to the other joint tenant(s) indicating your intention to sever the tenancy. Ensure that you serve the notice properly and keep evidence of service.

• Mutual Agreement: The most straightforward method of severing the tenancy is for all joint tenants to agree in writing to do so.

• Specific Actions: Certain actions, such as selling or mortgaging your share, may also automatically sever the tenancy.

• Court Order: A court order may be necessary if disputes arise.

After severance, it’s crucial to register the change with the Land Registry to update the property’s title. This involves completing the SEV form and providing the relevant supporting documentation.

What if Someone Disagrees?

Even if one joint tenant disagrees, they have the legal right to sever the joint tenancy by giving all joint tenants a written notice clearly stating their intention. As documentation, retain proof of service, such as a recorded delivery receipt. You will also need to notify the Land Registry of the change in ownership.

Our Advice

While severing a joint tenancy yourself is possible, we strongly recommend seeking professional legal advice. Both ownership arrangements have risks and benefits, which a qualified lawyer will ensure you understand before making any decisions. If you are considering severing your joint tenancy, contact us today. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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