Do both parties have to agree to sever a joint tenancy?
If you purchase a property with another person, or indeed inherit a property with someone else, you should decide which type of joint ownership this will involve. You can own as joint tenants or as tenants in common, which are significantly different. It is important to understand the difference, as this will affect what you can do with the property if the relationship breaks down or one of you dies.
What is a joint tenancy?
As joint tenants, individuals own equal rights to the property. It will automatically pass to the surviving owner if the other one dies; therefore, you cannot pass on your share of the property in your will.
You can change the current arrangement from joint tenants, such as if you are about to divorce from the other joint tenant or wish to bequest your share to a third party. This does not impact the ownership but changes how it is held. Severance means the property is held as tenants in common, meaning there are different shares, the property will not pass automatically to the survivor if one dies, and shares can be passed on in a will.
How can you sever a joint tenancy?
The severance of joint tenancy is straightforward; however, it is vital that it is done in the correct manner, and it is strongly advised that you take legal advice from a company such as https://www.parachutelaw.co.uk/severance-of-joint-tenancy.
It is important to understand that severance of a joint tenancy can be achieved without the consent of the joint owner, although it might be preferable to come to an understanding prior to serving notice. Nevertheless, the notice can be served in a valid manner without it being formally acknowledged. The next step is to register the new arrangement with HM Land Registry.
If the tenancy is severed after divorce proceedings begin, it will not affect the financial settlement, although a consent order will ensure it is legally binding. Both parties will need to consent to a sale regardless of how the property is held.
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