This article relates to property ownership in England and Wales
How you own your home can make a significant difference to what happens to it when one owner dies. For many couples, buying a home as Joint Tenants makes sense, because their interest in the property will automatically pass to the surviving partner.
Those with more complex family circumstances, for example, those with children from a previous relationship, may want more control over what happens to their share of the property. In that case, Severance of Joint Tenancy is worth considering.
Severance of Joint Tenancy changes the beneficial ownership so that the owners hold separate shares as Tenants in Common. A deceased owner’s share can then usually pass through their Will rather than automatically transferring to the surviving owner.
This article covers seven key things to understand about Severance of Tenancy, including its impact on your Will and Estate Plan, before you decide if it is right for you. For advice on your particular circumstances, please contact Redwood Financial.
1. What does Severance of Joint Tenancy mean?
A joint tenancy is a form of joint ownership where the owners have equal rights to the whole property. If one owner dies, ownership automatically transfers to the remaining joint owner or owners under the right of survivorship, rather than passing through their Will.
When you sever a joint tenancy, the owners become Tenants in Common. Each person then has a separate beneficial share. Those shares may be equal or unequal, depending on the existing beneficial interests and any valid agreement or declaration setting out different shares. Unequal shares, for example 60/40, should be properly documented. Instead of automatically passing to the other partner, the deceased’s share can form part of their Estate and pass according to their Will, or under the Rules of Intestacy if there is no valid Will.
Severing the tenancy does not itself mean selling the property or changing the people registered as its legal owners. It changes the way their beneficial interest is held.
2. What is the difference between Joint Tenants and Tenants in Common?
Both are co-ownership arrangements that allow two or more people to own a property together, but they differ in important ways.
| Joint Tenants | Tenants in Common | |
|---|---|---|
| Ownership | The owners have equal rights to the whole property | Each owner has a defined beneficial share |
| Shares | There are no separate beneficial shares | Each tenant can hold an equal or unequal share |
| When one owner dies | Their interest passes automatically to the surviving owner(s) | Their share forms part of their Estate |
| Can a Will control where the interest goes? | Generally no, because survivorship applies | Yes, the deceased’s share can normally pass under their Will |
| Right of survivorship | Applies | Does not apply to the deceased owner’s share |
Neither option is automatically better.
For some people, the simplicity of a joint tenancy is a clear benefit. For others, a Tenants in Common arrangement provides greater flexibility.
The important question is what you want the property to achieve for you, your partner, your children and your other beneficiaries.
3. Why might you want to sever a joint tenancy?
One of the most common reasons is to gain more control over who inherits your interest in the property, in line with your intention for your share and your family circumstances.
For example:
Imagine you and your new spouse own your home as Joint Tenants, and you have children. If you die first, your interest would pass to your spouse as the surviving owner.
If your spouse later remarries, that can affect their inheritance planning. In England and Wales, marriage generally revokes an existing Will unless an exception applies, such as where the Will was specifically made in contemplation of that marriage. They could also change their Will to include their new spouse, sell the property, or leave it to someone else. As a result, your children may not inherit what you intended, or nothing at all.
If you own the property as Tenants in Common instead, your Will can pass your share to your chosen beneficiaries while still making provisions for your spouse. For example, your Will could give your spouse a right to live in the property for the rest of their life, or until they remarry, move out permanently or choose to sell, while ensuring your share ultimately passes to your children.
Aside from second marriages and blended families, other circumstances where people may consider severance include:
- an unequal financial contribution towards the property, such as where one owner paid a larger deposit
- separation, relationship breakdown or divorce
- changes to wider Estate Planning or a new Will
- a desire for greater control over an individual share of the property, so you can deal with that share separately
Is there a tax benefit to severing a joint tenancy?
Severing a joint tenancy can make Estate Planning more flexible because each owner then has a separate share of the property that can pass through their Will. This may allow different Will or Trust arrangements to be considered. However, severance itself does not automatically reduce Inheritance Tax, and any tax consequences will depend on the wider Estate and the arrangements put in place.
4. Do all property owners have to agree?
One party to a joint tenancy can serve a notice of severance unilaterally without the other owners’ agreement. Where possible, however, it is sensible to discuss the proposed change with the other party beforehand, as cooperation can make the process less stressful and more straightforward. Severance can also arise through mutual agreement or a clear course of conduct between the owners.
There will, of course, be circumstances where cooperation is not possible, for example during divorce proceedings. In these circumstances, one party may serve a written notice of severance on the other owner.
Other examples include when a co-owner lacks mental capacity, the ownership position is disputed, or there is uncertainty over the shares involved. In these cases, it is especially important to seek professional advice before making changes.
5. How do you sever a joint tenancy?
The exact process depends on your circumstances and whether the other owners agree.
In broad terms, the process starts by establishing how the property is currently owned. This may involve checking the property transfer, title register, lease and any Trust Deed or Declaration of Trust before completing the appropriate documents. Once you submit the application, HM Land Registry will update the register to reflect the change.
If the owners hold unequal shares, set out those beneficial interests separately in the appropriate legal documentation, based on the owners’ contributions or agreement.
Where all the owners agree
If everyone agrees to the change, Form SEV can be submitted to HM Land Registry to enter a Form A restriction on the register after the beneficial joint tenancy is severed.
Where another owner does not agree
The process generally involves:
- preparing and serving a written notice of severance on the other owner or owners
- completing the appropriate Land Registry application
- providing evidence that the notice of severance has been served, which may include an original or certified copy of the notice and, where appropriate, a letter certifying service
- submitting any required supporting documents
A solicitor or conveyancer can help ensure you serve and submit the correct documents.
There is currently no HM Land Registry fee for changing beneficial ownership from joint tenants to tenants in common.
6. Should I review my Will if I sever a joint tenancy?
Severance of tenancy is not a standalone administrative task. You may need to review your Will and Estate Planning at the same time so your share of the property passes on as you intend.
Without a valid and clear Will, your share may be distributed under the Rules of Intestacy, which may not reflect your wishes. A Will can give you control for longer after your death than relying on survivorship alone.
At Redwood Financial, we always consider property ownership alongside Wills and wider Estate Planning, rather than in isolation.
We advise our clients to consider:
- who should inherit your defined share
- whether a surviving spouse or partner should be able to remain in the property
- how children or other beneficiaries should ultimately benefit
- what happens if family circumstances change, such as a later marriage or health event
- whether your existing Will still reflects your intentions
We can ensure your Will and wider Estate Plan truly reflect your wishes, reducing ambiguity later and avoiding risks of unintended outcomes or disputes.
7. Can you sever a joint tenancy yourself?
You can complete the legal process yourself by filling in the relevant forms. Currently, the Land Registry charges no fees to sever a tenancy.
However, it’s worth speaking to a professional beforehand to fully understand the consequences before taking action.
An expert like Redwood Financial can advise, helping you make the right decision for your situation:
- whether severance is appropriate in your circumstances
- how different ownership shares could affect your Estate Planning
- whether an unequal ownership interest needs to be documented
- what happens when one owner dies
- how to pass shares to your intended beneficiaries
- how the change interacts with your existing Will
- if necessary, what notice needs to be given to the other party
- which supporting documents are required
- the knock-on effect to your Estate Planning
This can be particularly valuable where the family circumstances are complicated. Many people buy property as joint tenants without realising the later implications, and advice can help them understand the law. If the circumstances are urgent or complex, act today.
Get advice from Redwood Financial about Severance of Tenancy
No single property ownership route is right for everyone. Joint ownership suits many people with straightforward family circumstances, while becoming Tenants in Common can offer more assurance and control for more complex or blended families.
The important thing is to understand what changing the tenancy actually means for you. It does not affect any rental tenancy agreement, because this is about the ownership structure rather than occupation under a lease.
At Redwood Financial, we are passionate about helping people to grow, protect and enjoy their wealth. We can review how your property is owned, explain the potential pros and cons of severance, and consider how it fits alongside your Will and wider Estate Plan.
Where Severance of Joint Tenancy is appropriate, we can help you understand how it fits into your wider Estate Plan and, where necessary, work alongside the appropriate legal professionals to ensure the severance and Land Registry requirements are dealt with correctly.
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