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                                   What does severance of tenancy mean?

Joint owners can either hold their Property  as Tenants in Common or Joint Tenants and whilst you might own  your property one way, if you want to, you can change how you hold your property. 

It is very common for joint owners to own property as joint tenants however it can be beneficial and preferable to change the ownership to tenants in common. This might be to ensure that your chosen beneficiaries, such as children from previous relationships,  inherit on your death,  to reduce a spouse’s estate for care fees or alter income tax and capital gains tax  liabilities for investment properties by way of a Declaration of Trust. 

In order to make the change from Joint Tenants to Tenants in Common, you must sever the tenancy by way of a notice of severance which is then registered with the Land Registry to note the change.

If you would like to discuss severing  your tenancy or making a will please contact Tina Dennison-Wiggins at tina@fairstep.co.uk or 012394 277 944 or fill out our contact form