Tenants in common and Mortgages

markajtasker

Hello All,
For IHT planning purposes I want t change the ownership of the house which is currently owned as tenants in common between two people to joint tenants. The property has a mortgage on it. Will i need my lender's agreement to change the ownership from joint tenants to tenants in common. At present we are jointly and severally liable to the lender for the mortgage . It is my wish and intention that we remain jointly and severally liable for the mortgage so no change on the mortgage front. If I do require or it is likely that I will  require my lender's agreement do they usually allow it and is it common for them to charge. If, for instance they have to release their land registry charge then re-apply it I imagine they would charge. Looking around online changing from joint tenants to tenants in common seems straightforward but I can find no mention of what happens if there is a mortgagor with a charge over the property involved. It is the issue of the mortgage and mortgagor's land registry charge over the property I am interested in. If I didn't have a mortgage there wouldn't be an issue. I am aware of the differences between the two types of ownership, both the advantages and disadvantages.
If anyone knows about this or has experience of it I would be grateful for your input. Thank you.

xylophone

For IHT planning purposes I want t change the ownership of the house which is currently owned as tenants in common between two people to joint tenants. 

What are you trying to achieve in respect of IHT?

Keep_pedalling

I don’t see how changing the ownership status helps with IHT. Even though ownership will pass to the surviving owner, the deceased’s share still count towards their estate for IHT purposes. 

Marcon

Lenders are only bothered about the security underlying the loan they make. Whether the property is owned as joint tenants or tenants in common shouldn't worry them as you are jointly and severally liable for the mortgage, but ask them to be on the safe side.

You'll both need to complete a trust deed (or if you have one already, update that), to confirm that you want to become joint tenants. If your title deeds currently have a restriction (e.g. on selling), you'll need to download form RX3 (https://www.gov.uk/government/publications/cancel-a-restriction-registration-rx3) and then send all your completed paperwork to the Land Registry (assuming you are in England or Wales).