What is a Severance of Tenancy?

In property ownership, the term “severance of tenancy” might not immediately sound familiar, but it can be crucial in understanding property rights and legal arrangements.

In the UK, severance of tenancy is a legal process that changes the way property is jointly owned. 

Whether you’re planning for the future or untangling property issues, understanding severance of tenancy can provide clarity and help secure your interests. 

Joint Tenancy vs. Tenancy in Common: What’s the Difference?

When two or more people jointly own a property, they usually do so as either joint tenants or tenants in common.

These terms define how ownership is shared and what happens to the property if one owner passes away:

Joint Tenancy

• Each owner has an equal share of the property.
• The ‘right of survivorship’ applies, meaning if one owner dies, their share automatically passes to the surviving co-owner(s).
• It is typically used by married couples or close family members.

Tenancy in Common

• Ownership shares can be unequal (e.g., one owner may have a 60% share while another has 40%).
• The right of survivorship does not apply. Instead, each owner’s share becomes part of their estate upon death, to be distributed according to their Will or intestacy rules.
• Often used in business partnerships or arrangements where owners wish to retain individual control over their shares.

How to Tell if You’re a Joint Tenant or Tenant in Common

1. Check the Title Deeds, as these will specify the type of ownership.
2. Request a copy of the official title from the Land Registry to see how it’s registered.
3. Think about how you purchased the property. Joint tenants usually have equal shares and the right of survivorship, while tenants in common may have unequal shares and can leave their share to others in a Will.
4. If you’re unsure, a solicitor can clarify your ownership status.

What Is Severance of Tenancy?

Severance of tenancy is the process where a joint tenancy is converted into a tenancy in common. It changes the legal relationship between co-owners, ensuring that the right of survivorship no longer applies.

This means each owner’s share of the property can be separately dealt with in their lifetime or through their estate.

Why Might Someone Want to Sever a Tenancy?

There are several reasons why property owners may choose to sever a joint tenancy:

1. Estate Planning

Severing a joint tenancy allows owners to leave their share of the property to someone other than their co-owner(s) in their Will. This can be especially important for individuals in second marriages or blended families who wish to ensure specific assets go to their children.

2. Relationship Breakdown

If a personal or business relationship between co-owners has deteriorated, severing the tenancy can give each party clearer control over their share of the property.

3. Financial Protection

In cases where one co-owner faces financial difficulties or legal claims, severance can protect the other co-owner’s share from being affected by debts or judgments.

How Is a Tenancy Severed?

Severance of tenancy can be achieved in several ways under UK law:

1. Mutual Agreement

All co-owners can agree to sever the joint tenancy. This is the simplest and most amicable route.

2. Notice of Severance

One co-owner can unilaterally sever the tenancy by serving a written notice (called a “notice of severance”) to the other co-owners. This notice must clearly state the intention to sever the joint tenancy and is effective upon delivery.

3. Implied Actions

Certain actions, such as a co-owner selling or transferring their interest in the property, can also lead to severance.

Legal Formalities

To ensure the severance is legally valid and properly documented, it is essential to:

• Serve the notice in writing.
• Update the Land Registry records. This involves completing and submitting a Form A (Restriction), which shows that ownership has changed from joint tenancy to tenants in common.
• Seek professional advice to avoid errors or disputes.

What Happens After Severance?

Once a joint tenancy is severed, each owner’s share of the property becomes distinct. Each co-owner can:

• Leave their share to somebody else in their Will.
• Sell or transfer their share independently.
• Use their share as collateral for a loan (subject to any restrictions).

Why Seek Legal Advice?

Severance of tenancy is a significant legal step that can have far-reaching implications for property ownership, estate planning, and personal relationships.

At ELM Legal Services, we specialise in guiding clients through property and estate matters. Whether you’re considering severance to protect your assets or navigate a complex property situation, our experienced team is here to help.

Understanding your property rights is essential. With the right advice and planning, severance of tenancy can provide peace of mind and ensure your interests are safeguarded.

Conclusion

Severance of tenancy is more than just a legal procedure; it’s a tool that can help you protect your interests, plan your estate, or manage property relationships effectively.

Understanding its implications and seeking expert advice ensures that your property arrangements align with your goals and circumstances. 

How ELM Legal Services Can Help  

At ELM Legal Services, we’ve helped over 30,000 clients across England and Wales with Wills, probate, power of attorney arrangements, and severance of tenancy.

Our expert team is committed to simplifying the legal process and tailoring it to meet your specific needs.

Whether you require assistance with drafting a Will, managing an estate, minimising tax liabilities, or handling property ownership changes such as severance of tenancy, we’re here to guide you through every step.

Contact us today to ensure that your legal arrangements are secure, efficient, and aligned with your goals.

Get in Touch

For more information about Wills, probate, or estate planning, call us today on 017 952 0698 or submit a free, no-obligation enquiry.