Severance of Tenancy?
Normally, when people buy a property together, they purchase as Joint Tenants, meaning that they both own the whole of the property. However, this may not be the best solution for Inheritance Tax, Care Fee Planning and other life events. Maplebrook Wills can expertly advise you on the best planning solutions for your particular circumstances. When a Severance of Tenancy occurs they become Tenants in Common instead.
Becoming Tenants in Common means you each own a percentage of the property usually 50% each but you can define the portions into unequal shares if you wish, for example, if you have put a disproportionate amount of funds into the purchase of the property.
More often than not the application is done mutually by both parties, however this is not necessary and can be done by one party alone as long as the joint owner is notified. This is useful when divorce proceedings are considered and there is a need to avoid your share of the property transferring automatically to your spouse if you should die before the financial situation is resolved.