Transfer Sole Tenancy to Tenancy in Common
According to recent studies , more than half of the adults living in the United Kingdom have not yet written a will (1). This is problematic for several reasons. First, the lack of a will can cause a great deal of confusion in regards to personal assets, estates, inheritance tax and possible custody of any minors.
Not only could this place a great deal of emotional stress upon the recently bereaved, but the fact of the matter is that disputes and legal battles may also come into play. One area which is often overlooked involves the concept of transferring a sole to what is known as a tenancy in common.
Let us look at why this is important and some of the reasons that this concern needs to be addressed sooner as opposed to later.Fwi
You must be wondering whether it is possible to change sole to tenants in common! To take note of an elementary fact: a tenancy in common is whereby two or more people agree to own a property.
If two or more people register to own a property, it is essential to determine whether they want to own it as joint property or tenancy in common.
In a broad stretch, joint owners hold absolute interest in the property share, and there is no separate share. On the other hand, tenants in common register ownership of the separate and definite shares of the same land or estate.
Joint tenancy or tenancy in common refers to the equity in registered land or estates. To keep you on track, let’s get a quick grasp of joint tenancy or tenancy in common.
What is Joint Tenancy?
If land is under registered mutual ownership, it means the owners are entitled to the whole equity share. In a real sense, when buying property, you engage in an imaginary holding company (a single legal entity company with its directors) to own the land.it is crucial to carry out a search before buying land.
In case of death of the joint tenants, the rule of survivorship will automatically apply. The ownership passes to the survivors. The equity automatically passes to survivors regardless of any contrary provision in the deceased will. If one joint owner survives, he possesses the sole ownership of the land or estate.
What is a Tenancy in Common?
In the case of tenancy in joint, the owners hold the title equity in share. Notably, the shares are held on an unequal scale. If there are no specified bonds, and no evidence to proof contrary, it is assumed the tenants in common hold equal bonds.
In case of death of the tenants in joint, the title shall shift following the deceased will. If there is no owned will, the rules of intestacy shall apply. The owned legal title does not pass, but the equitable bonds. Check our Blogs!
Transferring Sole Tenancy to Tenancy in Common
Another point should be mentioned here. Let us assume for a moment that a husband and a wife are tenants in common. Should the husband die and leave his share of the property to someone other than his wife, the home may have to be sold in order to give this third beneficiary the cash value that was promised within the will.
One option here is to have a specific clause known as “giving a life interest” written into the will. This allows the other half to continue to live in the home until his or her death.
Tenancy in common is an excellent way to avoid future disputes upon the death of a property owner. We are pleased to provide an expert that will help you construct your will while addressing such important issues.
Can i Change From Joint Tenants to Tenants in Common
In some instances, two people in registered mutual ownership may later decide to be tenants in common. In a real scenario, two individuals in a relationship may choose not to sell a property immediately after separation. When one owner decides to sell it later, it is referred to as severing of property, and one serves a severance to the other.
Registered owned properties rights under land registry serve a form known as SEV, which can automatically apply in such a situation. It’s not mandatory for both parties to settle on the notice. Once the other party serves a notice of severance through a land registry, the notice shall be rendered regardless of any agreement. Check our Locations!
On other occasions, it can happen naturally when one owner is bankrupt. In the event of bankruptcy, the share in equity belongs to the bankruptcy trustee.
Besides, if you register the land under a mortgage, you will have to seek consent from the mortgage bank for change of ownership. If all the parties come to an agreement, including the mortgage bank, they will sign documents of the agreement. You will have to pay some amount of money in the process.
Tenants in common who are willing to change the ownership of the registered land at a certain time, will sign documents of declaration stating their intentions as such. However, if the process turns out to be complicated, you can search for a property lawyer. Check our Prices!