When you purchase a property with a partner or spouse you will probably not be thinking too much about what will happen if one of you dies and how that will impact ownership. However, it is important that you understand what rights the survivor will have. Here we look at what is known as the right of survivorship.
What is a right of survivorship?
Property or land which is jointly owned can be held either as joint tenants or tenants in common. As joint tenants, or beneficial joint tenants, you will enjoy equal rights to the property and it will automatically pass to the survivor if one of you dies, meaning it cannot be passed on in a will.
Often spouses or partners will own a property as joint tenants, whilst siblings or business partners will often be tenants in common. However, disputes can arise for joint tenants, for example, in case of divorce or the break-up of a relationship.
Or perhaps you do not wish the ownership to pass to a survivor. This may be the case if, for example, you have children who are from a previous relationship and you want to pass your interest to them. However, as a joint tenant, you cannot do this in a will.
Severance of Joint Tenancy
It is possible to sever a joint tenancy, and you may wish to do so if a dispute arises or indeed, you may have tax reasons for doing this, changing the ownership to tenants in common. In the new arrangement, the owners’ shares of the property will be specifically defined, although this will depend on contributions. This share will then be seen as part of this person’s estate.
You will find information online on how to do this and any costs associated with it at sites such as https://www.parachutelaw.co.uk/severance-of-joint-tenancy. The new arrangement will be registered at the Land Registry.
Conclusion
There are good reasons why you might consider a severance of joint tenancy if a dispute among the parties arises. It is important to seek legal advice to understand the process.