Many homeowners may not have been aware of their property ownership arrangement, or the full extent of it when they first purchased their property. And when questions concerning ownership shares or wills start to arise, you may find that you want to change your current arrangements to better suit your interests. This article will help guide you through the process.
What is joint tenancy vs tenants in common?
Before we start, let’s clear up the differences between the two kinds of property ownership: joint tenancy, and tenants in common.
Joint tenancy means that all parties have equal interest in the property. Should one of the parties die, the other(s) will inherit the entire property in equal measure. The right of survivorship is also integral to joint tenancy agreements, with more information available here:
In contrast, tenants in common provide specific shares of the property to each contributor, meaning that those who contribute more, or third parties (like parents helping with a deposit), hold shares of the property that reflect their investments. Greater investment can mean a greater share.
How to change your agreement
Agreements are most commonly changed from joint tenancy to tenants in common through a legal process known as the severance of joint tenancy.
Severance of joint tenancy requires an extensive application process but can be done without the need for the other owners’ agreement. If done without their agreement, a form SEV is required alongside written notice regarding the change.
Severance of joint tenancy is best done with the help of knowledgeable legal professionals to guide the process and avoid legal disputes.
When changing from tenants in common to joint tenants, the agreement of all other owners is needed to proceed. Again, professionals can be hired to guide you through the forms, like the new trust deed you need to replace the old one. You will also need supporting documents, such as a statutory declaration or a statement of truth.
It’s worth noting that solicitors or conveyancers can also make the applications for you, helping you avoid the hassle.