Tenants in common

Savvy_Sue

Lindagreenacre wrote: »

It is possible to download from the land registry website the SEV form to sever the joint tenancy of our property and it is even free to submit.
Can anyone tell me how to then go about making it known that we are then tenants in common. Is there another form? or do we need to see a solicitor?
Linda

Who needs to know? I can't see that it's anyone's business but the Land Registry's at this stage. I suppose if the property is mortgaged or there are charges against it, then you'd need to contact them, but I can't see why you'd need a solicitor, and it's very possible that you can't make such a change without telling anyone with an interest in the property and getting their agreement.

elliebean_2

Savvy_Sue wrote: »

Who needs to know? I can't see that it's anyone's business but the Land Registry's at this stage. I suppose if the property is mortgaged or there are charges against it, then you'd need to contact them, but I can't see why you'd need a solicitor, and it's very possible that you can't make such a change without telling anyone with an interest in the property and getting their agreement.

You don't need a mortgage provider's permission to sever your joint tenancy. If you have a mortgage you are still jointly and severally liable for that mortgage regardless of whether you own your property jointly or as tenants in common.

A_little_lost

I have inherited some money which I intend to invest in property. I have sufficient cash to purchase 3 small properties outright (I live in a cheap area!) which would generate an income sufficient for my needs. However, I would like to involve my partner. He is currently earning sufficient income to enable us to apply for reasonably priced BTL mortgages. Until recently I have been self-employed with a low and insufficient salary.

The idea is that I put forward the deposits, use my partner's income to get the mortgages (until such time as the properties themselves are generating sufficient income to use those figures), between us we'll do the work to get the properties up to scratch and do any maintenance required once they are let, the tenants pay the mortgages, and we both benefit from the proceeds. Eventually we'd like my partner to be able to give up his current job and work on this with me full time.

We each have 2 children from previous marriages. The capital I am using to purchase the properties I inherited from my mother, and I would like my children to be the beneficiaries after mine or my partner's death (whichever comes latest)

I would create a deed of trust to ringfence my capital.

I understand that we can't borrow against my partner's salary unless he is a named purchaser. It has been suggested to me that by making us both tenants in common, he could have a right to a small portion of the property which would be ideal. What I'm not clear on though is whether the rental income has to be distributed in the same proportions when doing our accounts? Obviously we'd like to use up both our income tax allowances once he is working with me full time.

Any advice would be fabulous! Thank you

Savvy_Sue

A_little_lost wrote: »

I understand that we can't borrow against my partner's salary unless he is a named purchaser. It has been suggested to me that by making us both tenants in common, he could have a right to a small portion of the property which would be ideal. What I'm not clear on though is whether the rental income has to be distributed in the same proportions when doing our accounts? Obviously we'd like to use up both our income tax allowances once he is working with me full time.

I think that this question has been asked and answered on the Cutting Tax board: if the properties are owned, say, 70:30 then you can split the income the same way for tax purposes. See if you can find the answer over there, or post there if you can't.

kyo4o3d

Hi,
Just came across this rather old discussion.

Please note that if you are trying to use tenacy in common to solve a death duties problem, the Chancellor of the Exchequer in 2007 changed the regulations. Spouse who are married or in civil partnership can now pass on the their partner their death duties allowance. This effectively doubles the inheritance tax free allownce when the second party dies.

Have yet to find out if other reasons for going to tenancy in common still make it worthwhile!

Mojisola

kyo4o3d wrote: »

Hi,
Just came across this rather old discussion.

Please note that if you are trying to use tenacy in common to solve a death duties problem, the Chancellor of the Exchequer in 2007 changed the regulations. Spouse who are married or in civil partnership can now pass on the their partner their death duties allowance. This effectively doubles the inheritance tax free allownce when the second party dies.

Have yet to find out if other reasons for going to tenancy in common still make it worthwhile!

Most people do it to prevent the whole value of the house being used in care home fees for the survivor.

YesWillMan

A more valid reason is that each person can protect their interest in the property for their children or other family members.
This would ensure that should the survivor then remarry or meet someone else and change their will the share of the property of he/she who died first would NOT end up with the new partners/spouses family rather it would go to his/her own children or family.

Mojisola

YesWillMan wrote: »

A more valid reason is that each person can protect their interest in the property for their children or other family members.
This would ensure that should the survivor then remarry or meet someone else and change their will the share of the property of he/she who died first would NOT end up with the new partners/spouses family rather it would go to his/her own children or family.

It's also a benefit if either or both of the couple have children with someone else. They can ensure that their children will eventually get an inheritance. Otherwise, as YesWillMan says, the property could eventually be left (either through a will or through the intestacy rules) to the other parent's genetic children.

joe134

Mojisola wrote: »

It's also a benefit if either or both of the couple have children with someone else. They can ensure that their children will eventually get an inheritance. Otherwise, as YesWillMan says, the property could eventually be left (either through a will or through the intestacy rules) to the other parent's genetic children.

Hi, Just posted about tennants in common and come across this very long and interesting thread,which I would like some advice on if possible please.
If a couple have a house , tennants in common, and they fall out, as my daughter has, can the other partner, sell his/her beneficial interest to a third party, without permission of the other tennant?
This is what my daughters partner is saying he is doing, selling his half to the renter/mate, without my daughters permission, which she is totally against.They are having trouble selling it, hence renting to this person, with a view to buy, but cannot come up with the full asking price, so my daughters partner, wants to sell his half, cut and run, leaving my daughter with a new tennant in common.
Is this possible???? any advice would be most appreciated, as it,s causing so much grief , and do not want solicitors involved, if possible.thanks.

Savvy_Sue

joe134 wrote: »

Hi, Just posted about tennants in common and come across this very long and interesting thread,which I would like some advice on if possible please.
If a couple have a house , tennants in common, and they fall out, as my daughter has, can the other partner, sell his/her beneficial interest to a third party, without permission of the other tennant?
This is what my daughters partner is saying he is doing, selling his half to the renter/mate, without my daughters permission, which she is totally against.They are having trouble selling it, hence renting to this person, with a view to buy, but cannot come up with the full asking price, so my daughters partner, wants to sell his half, cut and run, leaving my daughter with a new tennant in common.
Is this possible???? any advice would be most appreciated, as it,s causing so much grief , and do not want solicitors involved, if possible.thanks.

I don't know, but I'd suggest that whether or not you WANT solicitors involved, the time may be coming when it makes sense to do so ... and as a first step, are you or she members of a trade union? If you are, you'll probably find that you can get a free half-hour telephone conversation which would help with this. If not, it may also be included in home insurance policies.