Wondering whether a joint tenancy could be right for you? Here’s what you need to know about this form of property ownership, and about the severance of joint tenancy if and when your situation changes.
What is a joint tenancy?
A joint tenancy is a legal structure for co-owning a property. It occurs when two or more people own equal shares in a property.
What are the benefits of a joint tenancy?
With this arrangement, every tenant listed in the documentation has equal rights to the property and each will be a whole owner. This means that if one party wants to sell up, the others must agree to it. Furthermore, if a tenant dies, their property share automatically transfers to the remaining tenant/s.
What are the disadvantages of a joint tenancy?
There are some features of this ownership structure which can be difficult if circumstances change. For example, with a joint tenancy, it is not possible to leave your property share to another person if you die, as it will automatically pass to the other joint tenant, or tenants.
It may also be difficult to sell a property and move on if you wish to, such as if your relationship with your joint tenant ends, unless you can get an agreement from the other party to do so.
What are the options if a joint tenancy is no longer for you?
It is possible to get a severance of joint tenancy with the help of a solicitor such as https://www.parachutelaw.co.uk/severance-of-joint-tenancy.
A solicitor will help you create the necessary paperwork, get the signatures you need and complete the relevant paperwork to file the severance of tenancy with the Land Registry. They will also transfer your ownership to another structure, such as tenants in common.