Severance of Tenancy
Protect your share of your home and ensure it passes to your chosen beneficiaries. Severance of tenancy gives you control over what happens to your most valuable asset.
Joint Tenants vs Tenants in Common
When two or more people own a property together, they can hold it in one of two ways: as joint tenants or as tenants in common. Understanding the difference is crucial for your estate planning.
Joint Tenants
Most couples who buy a home together are registered as joint tenants. Under this arrangement:
- Both owners are treated as owning the whole property together, rather than having separate shares
- When one owner dies, their interest in the property automatically passes to the surviving owner – this is called the “right of survivorship”
- It doesn’t matter what your will says – the property will pass to the surviving joint tenant regardless
- The property cannot be passed on to children or other beneficiaries until the surviving owner dies
Tenants in Common
As tenants in common, each owner has a distinct, defined share of the property (often 50/50, but can be any proportion). Under this arrangement:
- Each owner can leave their share to whoever they choose in their will
- Your share does not automatically pass to the other owner when you die
- You have complete control over who inherits your share of the property
- It allows for more sophisticated estate planning, including trust arrangements
Severance of tenancy is the legal process of changing from joint tenants to tenants in common, giving you control over your share of your home.
Why Severance Matters for Estate Planning
Severing your joint tenancy can be an essential part of protecting your family and ensuring your wishes are carried out. Here are the key reasons why it matters:
Control Over Your Share
Once severed, you can leave your share of the property to anyone you choose in your will, rather than it automatically passing to the surviving owner.
Protecting Children from Previous Relationships
If you have children from a previous relationship, severance ensures they can inherit your share of the property rather than it all going to your current partner.
Preserving Wealth for Future Generations
Combined with a trust, severance can ensure your children ultimately benefit from your share, even if your partner remarries or needs care later in life.
Potential Care Fee Planning
Severance is often the first step in strategies designed to protect a portion of your home’s value from being used to fund long-term care costs.
Protecting Your Home from Care Fees
One of the most common concerns we hear from clients is the fear that their home – often their largest asset – could be used to pay for care home fees, leaving little or nothing for their children to inherit.
While no arrangement can guarantee complete protection (and the rules around care funding are complex), severance of tenancy is often the first step in a broader strategy to protect at least a portion of your property’s value.
How It Works
When you sever your joint tenancy and own the property as tenants in common, you can then:
- Leave your share of the property in a trust for your children, giving your partner the right to live there for their lifetime
- This means if your partner later needs care, only their 50% share may be assessed for care funding – your share is already held in trust for your children
- Your partner maintains their right to live in the property, but your children’s inheritance is protected
Important note: This must be done well before any care is needed. Transferring assets when care is anticipated could be seen as “deprivation of assets” and the local authority may still include the property in their assessment. I’ll explain all the implications during your consultation.
The Severance Process
Severing a joint tenancy is a straightforward legal process that involves notifying your co-owner and updating the Land Registry records.
Serving Notice
A written notice of severance must be served on your co-owner. This can be done by one party without the other’s agreement, though it’s usually best to discuss it together as part of your estate planning.
Land Registry Application
A Form SEV is submitted to the Land Registry along with evidence that notice has been served. This updates the official register to show the property is now held as tenants in common.
Title Update
The Land Registry updates your property’s title register to include a “Form A restriction” which shows that the property is held as tenants in common. This is publicly recorded.
Update Your Will
Once severed, you should update your will to specify what happens to your share. This is often combined with setting up a trust to protect your share for your chosen beneficiaries.
When to Consider Severance
Severance of tenancy isn’t right for everyone, but there are several situations where it’s well worth considering:
- Blended families: If you or your partner have children from previous relationships and want to ensure they inherit your share of the property
- Protecting against remarriage: If you want to ensure your children inherit regardless of whether your partner remarries after your death
- Care fee concerns: If you’re planning ahead to potentially protect some of your property value from care home assessments
- Estate planning with trusts: If you want to set up a trust arrangement that allows your partner to remain in the home while securing your children’s inheritance
- Unequal contributions: If you and your co-owner contributed different amounts to the property purchase and want this reflected in ownership
- Business or tax planning: If there are specific financial or tax reasons to hold the property in defined shares
During your free consultation, I’ll help you understand whether severance makes sense for your particular circumstances and explain how it fits into your overall estate plan.
The Process with Your Estate Planner
We make the severance process straightforward and stress-free, handling all the paperwork while keeping you informed at every step.
Free Initial Consultation
We’ll discuss your situation, your family circumstances, and your goals. I’ll explain the implications of severance and whether it’s right for you. This can be at your home or via video call.
Clear Advice and Recommendations
I’ll provide you with clear, jargon-free advice on the best approach for your circumstances, including how severance fits with your will and any trust arrangements.
Preparation and Completion
I’ll prepare all the necessary documentation, serve the notice of severance, and handle the Land Registry application on your behalf.
Ongoing Support
Once complete, I’ll ensure your will and any trusts are properly aligned with your new ownership arrangement. I’m always available for questions.
Frequently Asked Questions
Common questions about severance of tenancy answered.
As joint tenants, when one owner dies, their share automatically passes to the surviving owner regardless of what their will says. As tenants in common, each owner has a distinct share of the property that they can leave to whoever they choose in their will. Severance of tenancy changes the ownership from joint tenants to tenants in common, giving you control over your share.
No, your partner does not need to agree. Severance of tenancy is a unilateral process, meaning one joint tenant can sever the tenancy without the consent of the other. However, you must serve notice on your co-owner to complete the process. While agreement isn’t required, We always recommend discussing this with your partner as part of your overall estate planning.
Severance of tenancy does not affect your mortgage. You and your co-owner remain jointly and severally liable for the mortgage debt. The severance only changes how you own the property, not your financial obligations. Your mortgage lender does not need to give permission, though it’s good practice to inform them of the change.
The severance process itself is relatively quick. Once the notice is served on your co-owner and the Form SEV is submitted to the Land Registry, the change is typically processed within 2-4 weeks. The entire process from initial consultation to completion usually takes around 4-6 weeks, depending on Land Registry processing times.
Related Services
Severance of tenancy often works best as part of a comprehensive estate plan.
Wills
Once you sever your tenancy, you’ll need a will to specify who inherits your share of the property.
Learn moreTrusts
A property trust can protect your share for your children while allowing your partner to remain in the home.
Learn moreLasting Power of Attorney
Ensure someone you trust can manage your property and finances if you become unable to do so yourself.
Learn moreReady to Protect Your Share?
Book a free, no-obligation consultation to discuss whether severance of tenancy is right for your circumstances. I’ll explain your options clearly and help you make the best decision for your family.