Changing to tenants in common

HB58

We have been advised to switch our house ownership from joint tenancy to tenants in common. We understand the principle but are not sure about the process.

We have downloaded and completed the forms to sever the joint tenancy but are not sure how to go about establishing tenancy in common.

Is this something we are able to ourselves, or do we need a solicitor? The severance forms were dead easy so are happy to do it ourselves if this is feasible.

There seem to be several potential forms that we coiuld use and we are not sure exactly where we need togo from here.

Many thanks

SmlSave

You can do it yourself if you want.

First you sever the joint tenancy at the Land Registry and then you are tenants in common.

If you wish (really should) you can then prepare a Trust Deed and then register that at the Land Registry which puts a restriction on the Title.

Then you need to make sure your Wills state clearly what you want to happen to your estate, if equity in the house isn't being left to the other owner then you want a right to reside put in place

McKneff

Can you tell me why you are doing this..

HB58

SmlSave wrote: »

If you wish (really should) you can then prepare a Trust Deed and then register that at the Land Registry which puts a restriction on the Title.

Is the 'restriction' saying in what proportions we own the house? Can we do the Trust Deed ourselves, it sounds the kind of thing that needs to be done by someone who understands the process!

HB58

McKneff wrote: »

Can you tell me why you are doing this..

I'd like to know that there will be something coming to our our son.

SmlSave

HB58 wrote: »

Is the 'restriction' saying in what proportions we own the house? Can we do the Trust Deed ourselves, it sounds the kind of thing that needs to be done by someone who understands the process!

No, the restriction doesn't state the percentage you own it refers to the Trust Deed which will.

You can create a Trust Deed where your son gets a percentage of the equity.

I would suggest using a solicitor to get it drawn up, off the top of my head it would likely cost £200 minimum

xylophone

https://www.gov.uk/joint-property-ownership/change-from-joint-tenants-to-tenants-in-common

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/490405/SEV.pdf

You do not mean I think that you wish to make your son a tenant in common now but rather that you wish to own the property as a TIC with your spouse? Under the standard arrangement as above the Form A restriction would be enough for this?

However, presumably you are doing this so that you can each leave your half in your will.

You will therefore be making new wills? Each of you will grant to the survivor a Life Interest in the property? http://www.makeawill.co.uk/page-right-to-live-file-33.html

Your solicitor could deal with both the Land Registry and your wills.

Mojisola

xylophone wrote: »

However, presumably you are doing this so that you can each leave your half in your will.

You will therefore be making new wills? Each of you will grant to the survivor a Life Interest in the property?

But also give the survivor the right to sell up and move to another property.

And decide who is to be responsible for maintenance and repairs - just the occupier or 50/50 occupier and son?

Penelope_Penguin

HB58 wrote: »

we are not sure exactly where we need togo from here.

Many thanks

Can I also suggest that when you convert to tenants in common, you obtain a written valuation for the property. My parents did exactly what you're planning, but didn't get the house valued. My dad died about a year later (mum continued to live alone in the property), and it was a further 20 years before we came to sell our parents' house. My sister and I had no idea of the value of the property 20 years ago (when we inherited half the property from our father), so needed to employ a surveyor to obtain a "retrospective valuation" of the property in 1994. This value was needed so that we could calculate CGT on the increase in value during our ownership.

Linton

Suggest you carefully work through with your partner every combination of deaths, divorces, marriages, house moves etc of everyone concerned to ensure that the wills dont leave the survivors with serious problems.

getmore4less

Penelope_Penguin wrote: »

Can I also suggest that when you convert to tenants in common, you obtain a written valuation for the property. My parents did exactly what you're planning, but didn't get the house valued. My dad died about a year later (mum continued to live alone in the property), and it was a further 20 years before we came to sell our parents' house. My sister and I had no idea of the value of the property 20 years ago (when we inherited half the property from our father), so needed to employ a surveyor to obtain a "retrospective valuation" of the property in 1994. This value was needed so that we could calculate CGT on the increase in value during our ownership.

things may have change but if there is a life interest(interest in possession trust) there may well be no CGT to pay as some qualify for PRR, but they still get included for IHT.

it is an area that need research to understand properly for anyone going down this route. gets even more complex if non spouse/civil partners involved.