sever joint tenancy / transfer ownership of property
Discussion
could someone who knows well enough to explain in plain English to a simpleton (me)...
Married couple have severed joint tenancy way back in 2007 - this is the marital home and the couple is staying together
What does that actually mean?
The wife now wants to take full title / ownership of the property involved
Husband is willing participant
Is there any reason why / why not
Is it easy to do?
TIA
Married couple have severed joint tenancy way back in 2007 - this is the marital home and the couple is staying together
What does that actually mean?
The wife now wants to take full title / ownership of the property involved
Husband is willing participant
Is there any reason why / why not
Is it easy to do?
TIA
Post makes no sense, which is why no one has responded.
You can’t sever joint tenancy unless someone acquires the asset or the share of the asset to which the joint bit relates - usually via a sale.
Normally married couple are tenants in common, ie both own 100% of the house.
Joint Tenancy usually specifies who owns which bit and what happens in the event of a death. So his band owns 50% wifey owns 50% if either one dies then the other inherits the other share.
If both are married then the transfer of any asset between the two of them is both allowable, requires no money (other than changing the documents) attracts no tax and is usually meaningless in any future divorce as is still treated as a marital assets regardless of whoWe name is on what.
You can’t sever joint tenancy unless someone acquires the asset or the share of the asset to which the joint bit relates - usually via a sale.
Normally married couple are tenants in common, ie both own 100% of the house.
Joint Tenancy usually specifies who owns which bit and what happens in the event of a death. So his band owns 50% wifey owns 50% if either one dies then the other inherits the other share.
If both are married then the transfer of any asset between the two of them is both allowable, requires no money (other than changing the documents) attracts no tax and is usually meaningless in any future divorce as is still treated as a marital assets regardless of whoWe name is on what.
Complexity/painfulness probably depends on the circumstances.
In terms of practicalities, assuming the title to the property is registered in joint names and does not have outstanding lending on it, a Land Registry “TR1” transfer transferring the property from the two of them to the wife can be completed and then registered at the Land Registry to effect the transfer in legal title. If you spend time researching it yourself or are willing to pay a local cheapish solicitor circa £500 plus VAT to sort it, you should be fine and it shouldn’t be difficult.
If the property has outstanding lending on it or there are Land Registry “restrictions” on the title then it will get more messy as you’re likely to need to ask the bank/restriction beneficiary for consent (which can be a painful process). The bank are likely to require a new charge over the property in just the wife’s name, the bank will insist on using a preferred panel solicitor and costs will go up. Also, transferring a property subject to a continuing debt can complicate the tax position.
If the property isn’t registered at the Land Registry it will be a bit of a ball ache as you’ll be obliged to register it when you transfer it from couple to just wife.
First stop is probably to check if the property is registered and see what’s on the title.
In terms of practicalities, assuming the title to the property is registered in joint names and does not have outstanding lending on it, a Land Registry “TR1” transfer transferring the property from the two of them to the wife can be completed and then registered at the Land Registry to effect the transfer in legal title. If you spend time researching it yourself or are willing to pay a local cheapish solicitor circa £500 plus VAT to sort it, you should be fine and it shouldn’t be difficult.
If the property has outstanding lending on it or there are Land Registry “restrictions” on the title then it will get more messy as you’re likely to need to ask the bank/restriction beneficiary for consent (which can be a painful process). The bank are likely to require a new charge over the property in just the wife’s name, the bank will insist on using a preferred panel solicitor and costs will go up. Also, transferring a property subject to a continuing debt can complicate the tax position.
If the property isn’t registered at the Land Registry it will be a bit of a ball ache as you’ll be obliged to register it when you transfer it from couple to just wife.
First stop is probably to check if the property is registered and see what’s on the title.
Gargamel said:
Post makes no sense, which is why no one has responded.
You can’t sever joint tenancy unless someone acquires the asset or the share of the asset to which the joint bit relates - usually via a sale.
Normally married couple are tenants in common, ie both own 100% of the house.
Joint Tenancy usually specifies who owns which bit and what happens in the event of a death. So his band owns 50% wifey owns 50% if either one dies then the other inherits the other share.
If both are married then the transfer of any asset between the two of them is both allowable, requires no money (other than changing the documents) attracts no tax and is usually meaningless in any future divorce as is still treated as a marital assets regardless of whoWe name is on what.
For when OP’s friend looks at this, much of the above is wrong. No offence, Gargamel.You can’t sever joint tenancy unless someone acquires the asset or the share of the asset to which the joint bit relates - usually via a sale.
Normally married couple are tenants in common, ie both own 100% of the house.
Joint Tenancy usually specifies who owns which bit and what happens in the event of a death. So his band owns 50% wifey owns 50% if either one dies then the other inherits the other share.
If both are married then the transfer of any asset between the two of them is both allowable, requires no money (other than changing the documents) attracts no tax and is usually meaningless in any future divorce as is still treated as a marital assets regardless of whoWe name is on what.
Yes, you absolutely can sever a joint tenancy without a third party acquiring the asset/a share of it. Severing a joint tenancy means changing how the beneficial ownership is held, from beneficial joint tenants to being tenants in common.
Tenants in common is the opposite of what it says above - each person owns a distinct share of (the beneficial interest in) the asset, which can be disposed of under their will or otherwise separately from the other party’s. It might be 50/50, it might be different proportions (if it’s the latter, usually set out in a declaration of trust).
A joint tenancy is the opposite - both people effectively own the whole asset. When one dies, the asset becomes the sole property of the one that remains by what’s called survivorship. The dead owner’s will has no effect on what happens.
A joint tenancy can not therefore say what happens on death - survivorship is what applies. Neither can the declaration of trust relevant to a beneficial interest held as tenants in common - it will say who owns what, and the deceased’s will (or the intestacy rules) will dictate what happens to it.
I wouldn’t say there is a ‘normal’ for how married couples hold their property of the two choices. It’s a choice for every couple to make at the time.
Edited by bladebloke on Saturday 9th November 06:49
RichardDastardly said:
Complexity/painfulness probably depends on the circumstances.
In terms of practicalities, assuming the title to the property is registered in joint names and does not have outstanding lending on it, a Land Registry “TR1” transfer transferring the property from the two of them to the wife can be completed and then registered at the Land Registry to effect the transfer in legal title. If you spend time researching it yourself or are willing to pay a local cheapish solicitor circa £500 plus VAT to sort it, you should be fine and it shouldn’t be difficult.
If the property has outstanding lending on it or there are Land Registry “restrictions” on the title then it will get more messy as you’re likely to need to ask the bank/restriction beneficiary for consent (which can be a painful process). The bank are likely to require a new charge over the property in just the wife’s name, the bank will insist on using a preferred panel solicitor and costs will go up. Also, transferring a property subject to a continuing debt can complicate the tax position.
If the property isn’t registered at the Land Registry it will be a bit of a ball ache as you’ll be obliged to register it when you transfer it from couple to just wife.
First stop is probably to check if the property is registered and see what’s on the title.
Advice in here good, though - tell them to go see a solicitor. When dealing with substantial assets, it’s not worth the risk of messing things up by trying to do it DIY.In terms of practicalities, assuming the title to the property is registered in joint names and does not have outstanding lending on it, a Land Registry “TR1” transfer transferring the property from the two of them to the wife can be completed and then registered at the Land Registry to effect the transfer in legal title. If you spend time researching it yourself or are willing to pay a local cheapish solicitor circa £500 plus VAT to sort it, you should be fine and it shouldn’t be difficult.
If the property has outstanding lending on it or there are Land Registry “restrictions” on the title then it will get more messy as you’re likely to need to ask the bank/restriction beneficiary for consent (which can be a painful process). The bank are likely to require a new charge over the property in just the wife’s name, the bank will insist on using a preferred panel solicitor and costs will go up. Also, transferring a property subject to a continuing debt can complicate the tax position.
If the property isn’t registered at the Land Registry it will be a bit of a ball ache as you’ll be obliged to register it when you transfer it from couple to just wife.
First stop is probably to check if the property is registered and see what’s on the title.
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