Quick answer
Form SEV is used to formally sever a joint tenancy on UK property — converting joint tenancy into tenancy in common. Severance means each owner holds a distinct share that can be left by will (rather than passing automatically to the surviving owner) — a key step for couples planning to leave their share of the home to children under a will trust, to use both spouses’ nil-rate bands, or to ring-fence assets against care fees in some scenarios. The form is filed with HM Land Registry along with a notice of severance to the other owner (usually for free), and the change is recorded on the title register. This guide explains exactly when and why to use Form SEV, the tax and IHT consequences of severing (often favourable), the strict notice requirements, and the common mistakes people make filing the form.
Last reviewed: 24 May 2026 by the MP Estate Planning editorial team. Jurisdiction: England and Wales. Scotland and Northern Ireland have different probate and intestacy rules; the IHT thresholds are UK-wide.
Did you know that nearly 60% of co-owned properties in the UK are held as joint tenants? This means that if one owner passes away, the other automatically inherits the entire property. While this can be a straightforward way to manage inheritance, it may not always be the most tax-efficient or suitable for your protection planning needs.
Severing a joint tenancy allows you to change how you own a property with someone else, giving you more flexibility in terms of inheritance and tax planning. Using the SEV form is a crucial step in this process, enabling you to achieve your estate planning goals more effectively.
We understand that managing your property and assets is crucial for securing your family’s future. In this article, we’ll guide you through the process of using Form SEV to sever joint tenancy in the UK, ensuring you have control over your tax and protection planning.
Key Takeaways
- Understand the implications of holding a property as joint tenants.
- Learn how severing a joint tenancy can benefit your tax and protection planning.
- Discover the role of the SEV form in changing co-ownership structures.
- Find out how to achieve more flexibility in your estate planning.
- Gain insights into securing your family’s future through effective property management.
Understanding Joint Tenancy in the UK
Understanding joint tenancy is crucial for anyone considering co-owning a property in the UK. Joint tenancy is a form of co-ownership where two or more individuals own a property together, with each owner having an undivided interest in the entire property.
What is Joint Tenancy?
Joint tenancy is often used by couples or business partners who want to own a property together. One of the defining characteristics of joint tenancy is the right of survivorship, which means that when one owner dies, their share automatically passes to the remaining owners. This can have significant implications for estate planning and inheritance.
Key Features of Joint Tenancy
The key features of joint tenancy include:
- Undivided Interest: Each joint tenant has an undivided interest in the entire property.
- Right of Survivorship: The share of a deceased joint tenant automatically passes to the remaining joint tenants.
- Four Unities: Joint tenancy requires the four unities: interest, title, time, and possession. This means that joint tenants must have the same interest in the property, acquire it at the same time, and have the same rights to the property.
Understanding these features is essential for anyone considering joint tenancy as a form of property ownership in the UK. It’s also important to consider how joint tenancy might impact your estate planning and tax obligations, including the potential need to use the SEV form UK to sever joint tenancy.
The Concept of Severing Joint Tenancy
In the UK, severing a joint tenancy is an essential consideration for homeowners looking to protect their assets and ensure their estate planning is effective. Severing a joint tenancy allows you to change the way you own a property with others, providing more control over your share.
Definition of Severing Joint Tenancy
Severing a joint tenancy is the process of converting a joint tenancy into a tenancy in common. This means that the right of survivorship is removed, and each owner has a separate, distinct share in the property. By doing so, you can ensure that your share of the property is passed on to your chosen beneficiaries, rather than automatically going to the other joint tenants.
For instance, if you’re a homeowner in the UK, severing a joint tenancy can be a vital step in managing your estate. It allows you to have more control over what happens to your share of the property when you pass away. You can read more about how jointly owned property affects care fees in our detailed guide: Understanding Care Fees and Jointly Owned.
Importance of Severing for Estate Planning
Severing a joint tenancy is crucial for estate planning as it gives you the flexibility to decide who inherits your share of the property. This can be particularly important if you have specific wishes regarding the distribution of your assets after you pass away. By severing the joint tenancy, you can ensure that your estate is managed according to your wishes, providing peace of mind for you and your loved ones.
Key benefits of severing joint tenancy for estate planning include:
- Control over who inherits your share of the property
- Flexibility in managing your estate according to your wishes
- Protection of your assets for future generations
By understanding the concept of severing joint tenancy and its importance for estate planning, you can make informed decisions about your property ownership and ensure that your assets are protected for the future.
Overview of Form SEV
Form SEV plays a pivotal role in notifying the Land Registry about the severance of a joint tenancy. This form is a crucial document that updates the property’s title deeds to reflect the change in ownership structure from a joint tenancy to a tenancy in common.
Purpose of Form SEV
The primary purpose of Form SEV is to inform the Land Registry that a joint tenancy has been severed. This is essential for updating the property records to show that the owners now hold the property as tenants in common, rather than as joint tenants. By doing so, it ensures that the ownership details are accurate and up-to-date.
Who Needs to Use Form SEV?
Anyone who is a party to a joint tenancy agreement and wishes to sever it needs to use Form SEV. This includes:
- Co-owners who want to change their ownership structure
- Individuals seeking to protect their share of the property
- Those looking to ensure their share can be passed on according to their will
It’s particularly relevant for individuals who are considering estate planning or wish to safeguard their assets.
When to Use Form SEV
Form SEV should be used when the decision to sever a joint tenancy has been made. This could be due to various reasons such as:
- Changes in personal circumstances
- Estate planning considerations
- Desire to protect individual shares of the property
It’s essential to complete and submit Form SEV promptly to ensure that the Land Registry updates the property’s records accordingly.
To illustrate the process and importance of Form SEV, let’s consider the following table that outlines the key steps and considerations:
| Step | Description | Considerations |
|---|---|---|
| 1. Decision to Sever | Co-owners decide to sever the joint tenancy | Reasons for severance, implications on ownership |
| 2. Completion of Form SEV | Form SEV is filled out accurately | Ensure all required details are provided |
| 3. Submission to Land Registry | Form SEV is submitted to the Land Registry | Processing time, required documentation |
By understanding and correctly using Form SEV, individuals can ensure that their property ownership is structured in a way that aligns with their personal and financial goals.
How to Complete Form SEV
Severing joint tenancy requires careful completion of Form SEV, a process we will guide you through. Completing this form accurately is crucial for effective estate planning and to ensure that your intentions are legally recognized.
Step-by-Step Guide to Filling Out the Form
To fill out Form SEV correctly, follow these steps:
- Identify the Property: Clearly state the address of the property held in joint tenancy.
- Provide Joint Tenant Details: Include full names and addresses of all joint tenants.
- State the Intent to Sever: Clearly indicate your intention to sever the joint tenancy.
- Sign and Date: All parties must sign and date the form.
It’s essential to be meticulous when filling out Form SEV. Any inaccuracies or omissions could lead to delays or complications in the severing process.
Common Mistakes to Avoid
When completing Form SEV, avoid the following common mistakes:
- Incomplete Information: Ensure all required fields are filled out.
- Inaccurate Details: Double-check names, addresses, and property details.
- Missing Signatures: Verify that all joint tenants have signed the form.
By being aware of these potential pitfalls, you can ensure a smoother process.
Required Documentation
To support your Form SEV, you will need to provide certain documentation:
| Document | Description |
|---|---|
| Proof of Identity | Valid ID for all joint tenants (e.g., passport, driver’s license) |
| Property Deeds | Copies of the property deeds or title documents |
Having all necessary documents ready will facilitate the process and help avoid any unnecessary delays.
By following this guide and being mindful of the potential pitfalls, you can successfully complete Form SEV and achieve your estate planning goals.
Legal Implications of Severing Joint Tenancy
Understanding the legal implications of severing joint tenancy is essential for making informed decisions about your property and financial future. When you sever a joint tenancy, you’re not just changing the way you own your property; you’re also potentially altering your inheritance tax liability and ownership rights.
Effects on Ownership Rights
Severing a joint tenancy converts it into a tenancy in common, which changes the nature of ownership. Here are the key effects on ownership rights:
- Individual Control: Each tenant in common can dispose of their share independently.
- No Automatic Inheritance: Unlike joint tenancy, where the surviving tenant automatically inherits the deceased’s share, tenancy in common allows for more flexibility in estate planning.
- Potential for Disputes: With separate shares, there’s a potential for disagreements among co-owners regarding the management and disposal of the property.
Impact on Inheritance Tax
Severing a joint tenancy can have significant implications for inheritance tax (IHT). Here are some key considerations:
| Aspect | Joint Tenancy | Tenancy in Common (After Severing) |
|---|---|---|
| Inheritance Tax Liability | The entire property is considered part of the surviving tenant’s estate. | Only the deceased’s share is subject to IHT. |
| Estate Planning Flexibility | Limited flexibility as the property automatically passes to the surviving tenant. | More flexible as the deceased can bequeath their share to anyone. |
| Tax Reliefs and Exemptions | Spousal exemption may apply, but other reliefs are limited. | Potential for business or agricultural property relief on the deceased’s share. |
By severing a joint tenancy, you can potentially reduce your IHT liability and gain more control over how your share of the property is distributed after your death. However, it’s crucial to consider your overall estate planning goals and seek professional advice to ensure that severing joint tenancy aligns with your financial and familial circumstances.
Tax Considerations for Severing Joint Tenancy
Three rule changes you may need to consider (2026/27)
1. Pensions become subject to IHT from 6 April 2027. Most unused defined-contribution pension pots currently sit outside the estate for IHT — that ends on 6 April 2027 (gov.uk policy paper). HMRC estimates around 10,500 estates will face IHT for the first time as a result.
2. Business and agricultural property reliefs capped at £2.5m per person from 6 April 2026. Above the cap, only 50% relief applies — effective IHT of 20%. AIM shares dropped to 50% relief and do not use the £2.5m allowance (Saffery — APR/BPR reforms).
3. The NRB, RNRB and £2m taper threshold are frozen until 5 April 2031 following the 2024 and 2025 Budgets (gov.uk — NRB and RNRB freeze). With inflation, more estates will be pulled into IHT each year — a process commonly called “fiscal drag.”
The decision to sever a joint tenancy can lead to significant changes in your tax liability, making it essential to grasp these tax considerations. When you sever a joint tenancy, you’re not just changing the way you own your property; you’re also potentially altering your tax obligations.
Impact on Tax Liability
Severing a joint tenancy can affect your tax liability in several ways. For instance, it can change how inheritance tax is calculated on your property. In the UK, when a joint tenant dies, their share automatically transfers to the remaining tenant(s) due to the right of survivorship. However, upon severing, each tenant’s share becomes part of their estate, potentially increasing the inheritance tax liability.
Here’s a simplified example of how severing joint tenancy can impact tax liability:
| Scenario | Inheritance Tax Implication |
|---|---|
| Joint Tenancy | The deceased’s share automatically passes to the surviving tenant(s), potentially reducing inheritance tax liability. |
| Tenancy in Common (after severing) | Each tenant’s share is considered part of their estate, potentially increasing inheritance tax liability. |
Reporting Requirements After Severing
After severing a joint tenancy, it’s crucial to understand the reporting requirements to HMRC. You may need to update your tax records to reflect the change in ownership structure. This includes notifying HMRC about any changes to your Capital Gains Tax or inheritance tax liabilities.
For example, if you’re severing a joint tenancy on a property that’s not your main residence, you may need to report any capital gains to HMRC. It’s also worth noting that using Form SEV to sever a joint tenancy is a significant step that requires careful consideration and potentially professional advice.
Understanding the tax implications of severing a joint tenancy is vital for making informed decisions about your estate. By considering these factors, you can better navigate the complexities of UK tax law and ensure you’re meeting your tax obligations.
Protecting Your Assets through Severing
Severing a joint tenancy can be a crucial step in protecting your assets in the UK. By converting your joint tenancy to a tenancy in common, you can ensure that your share of the property is safeguarded against potential financial risks.
Protecting Against Creditors
One of the key benefits of severing a joint tenancy is protecting your assets from creditors. When you hold a property as joint tenants, your share can be vulnerable to creditors’ claims. By severing the joint tenancy, you can:
- Ensure that your share of the property is treated as a separate asset
- Protect your share from being claimed by creditors in the event of financial difficulties
- Provide an additional layer of security for your assets
For example, if one joint tenant faces financial difficulties, their creditors may attempt to claim their share of the property. By severing the joint tenancy, you can protect your share from being affected by your co-owner’s financial issues.
Impact on Vulnerability to Care Costs
Severing a joint tenancy can also have implications for care costs. In the UK, the value of your property can be considered when assessing your eligibility for state-funded care. By severing the joint tenancy, you can potentially reduce the value of your assets that are considered for care costs.
It’s essential to consider the potential impact on care costs when making decisions about your property. We recommend consulting with a financial advisor to understand how severing a joint tenancy might affect your specific situation.
Here are some key points to consider regarding care costs:
- The value of your share in the property may be assessed differently after severing the joint tenancy
- You may be able to reduce your liability for care costs by protecting your share of the property
- It’s crucial to seek professional advice to understand the implications for your specific circumstances
Alternatives to Joint Tenancy
For those looking beyond joint tenancy, tenancy in common presents a viable alternative in the UK property landscape. This form of co-ownership allows multiple individuals to own a property together, but with distinct shares that can be unequal and can be passed down to heirs.
Tenancy in Common Explained
Tenancy in common is a flexible arrangement where each co-owner has a separate and distinct share in the property. Unlike joint tenancy, where co-owners have equal rights to the entire property, tenancy in common allows for varying percentages of ownership. For instance, one owner might hold 60% of the property, while another owns 40%. This flexibility makes it an attractive option for those who want to reflect their financial contributions or other considerations in their ownership stakes.
“Tenancy in common offers a more nuanced approach to co-ownership, allowing for the complexity of real-life relationships and financial contributions to be reflected in the ownership structure,” as noted by property law experts.
Comparative Benefits and Drawbacks
When considering alternatives to joint tenancy, it’s crucial to weigh the benefits and drawbacks of tenancy in common. On the positive side, tenancy in common:
- Allows for unequal ownership shares, reflecting different financial contributions or agreements among co-owners.
- Provides flexibility in managing and distributing the property, as each owner’s share can be dealt with independently.
- Enables co-owners to pass their shares to their heirs, rather than automatically transferring to the remaining co-owners.
However, there are also potential drawbacks to consider:
- The lack of automatic survivorship can lead to more complex inheritance situations.
- Co-owners may face challenges in managing the property if their interests diverge.
- Potential for disputes among co-owners regarding the management and disposition of the property.
In conclusion, while joint tenancy has its advantages, tenancy in common offers a valuable alternative for those seeking more flexibility and control over their property ownership. By understanding the comparative benefits and drawbacks, individuals can make informed decisions that best suit their needs and circumstances.
Frequently Asked Questions about Form SEV
The process of severing joint tenancy using Form SEV can be complex, and many individuals have questions about the procedure. We understand that clarity is key, and we’re here to address some of the most frequently asked questions about Form SEV.
What Happens After Submission?
After submitting Form SEV, the joint tenancy is severed, and the property is converted into a tenancy in common. This change has significant implications for your estate planning and tax obligations.
Here are the key steps that follow the submission:
- The Land Registry is notified of the change.
- Your ownership rights are updated to reflect the new tenancy arrangement.
- You may need to notify HMRC about the change for tax purposes.
It’s essential to keep records of the submission and any subsequent communications.
Can Form SEV Be Reversed?
Reversing a severance of joint tenancy using Form SEV is not straightforward. Once the form is submitted and processed, the joint tenancy is severed, and the property becomes a tenancy in common.
To revert to a joint tenancy, you would need to create a new joint tenancy agreement, which may involve legal and potentially tax implications.
Key Considerations:
| Aspect | Joint Tenancy | Tenancy in Common |
|---|---|---|
| Ownership | Joint owners have equal rights | Owners can have different shares |
| Survivorship | Rights pass to the surviving owner(s) | No automatic survivorship |
| Tax Implications | Potential for lower IHT liability | More flexibility in estate planning |
Understanding these differences is crucial for making informed decisions about your property.
If you’re still unsure about the implications of severing joint tenancy or have further questions, it’s advisable to consult with a legal professional.
Professional Assistance with Form SEV
While it’s possible to complete Form SEV on your own, certain situations demand the expertise of a solicitor. Severing joint tenancy is a significant legal step that can have far-reaching implications on your estate planning and tax obligations.
When to Consult a Solicitor
There are several scenarios where seeking professional advice is not just beneficial but necessary:
- Complex Family Dynamics: If you have a complex family situation, such as previous marriages or estranged family members, a solicitor can help navigate these complexities.
- Significant Assets: If you have substantial assets that you wish to protect or distribute in a specific manner, professional advice can ensure that your wishes are legally binding.
- Uncertain About the Process: If you’re unsure about any part of the Form SEV process, a solicitor can provide clarity and guidance.
Benefits of Seeking Professional Advice
Consulting a solicitor who specializes in estate planning and tax law can offer numerous benefits:
- Expert Knowledge: Solicitors have in-depth knowledge of the legal and tax implications of severing joint tenancy.
- Personalized Advice: They can provide tailored advice based on your specific circumstances and goals.
- Avoiding Pitfalls: Professionals can help you avoid common mistakes that could lead to legal or financial issues down the line.
| Benefits | Description |
|---|---|
| Expert Knowledge | In-depth understanding of legal and tax implications |
| Personalized Advice | Tailored guidance based on individual circumstances |
| Avoiding Pitfalls | Prevention of common mistakes in the process |
By seeking professional assistance with Form SEV, you can ensure that your application is successful and that your interests are protected. Whether you’re dealing with complex family dynamics or significant assets, a solicitor can provide the expertise needed to navigate the process effectively.
Real-Life Scenarios of Severing Joint Tenancy
Real-life case studies provide valuable insights into the process and benefits of severing joint tenancy in the UK. By examining actual examples, we can better understand how severing joint tenancy can be effectively used for estate planning purposes.
Case Studies for Better Understanding
Let’s consider a few examples that illustrate the practical application of severing joint tenancy.
- A couple in their 50s, owning a property as joint tenants, decide to sever the tenancy to protect their individual shares for their children from previous marriages.
- A homeowner, concerned about potential care costs, severs the joint tenancy to convert it into a tenancy in common, thereby potentially shielding part of their estate.
These scenarios demonstrate how severing joint tenancy can be a strategic move for asset protection and inheritance planning.
Lessons Learned from Real Examples
From these case studies, we can derive several key lessons:
| Scenario | Action Taken | Outcome |
|---|---|---|
| Couples with children from previous marriages | Severed joint tenancy | Protected individual shares for their children |
| Homeowners concerned about care costs | Converted to tenancy in common | Potentially shielded part of their estate |
As illustrated, severing joint tenancy can have significant implications for estate planning. For more information on protecting your family’s assets, you may find our guide on inheritance tax tips for unmarried joint helpful.
“Severing joint tenancy allows individuals to have more control over their share of the property, providing a safeguard for their beneficiaries.” – Estate Planning Expert
By understanding these real-life scenarios and the lessons they provide, homeowners can make more informed decisions about their estate planning needs.
Conclusion: Final Thoughts on Severing Joint Tenancy
Severing joint tenancy is a significant decision that requires careful consideration, particularly when it comes to estate planning UK. As we’ve explored, using the SEV form UK is a crucial step in this process, allowing you to manage your assets effectively and protect your family’s future.
To recap, severing joint tenancy can have a substantial impact on your tax liability and ownership rights. By understanding the implications and following the correct procedure for severing joint tenancy UK, you can make informed decisions about your estate.
Key Takeaways and Next Steps
We’ve covered the essential aspects of severing joint tenancy, from completing the SEV form UK to the legal implications and tax considerations. Now, it’s essential to consider how severing joint tenancy aligns with your long-term estate planning UK goals.
We encourage you to take action and review your current joint tenancy arrangements. By doing so, you can ensure that your assets are protected and distributed according to your wishes. For personalized guidance on severing joint tenancy and estate planning UK, consider consulting a professional to navigate the process effectively.
FAQ
What is Form SEV and why is it used to sever joint tenancy?
Form SEV is a document used to notify the Land Registry that a joint tenancy has been severed, converting it into a tenancy in common. This is essential for estate planning, as it allows individuals to control what happens to their share of the property upon their death.
How do I complete Form SEV correctly?
To complete Form SEV, you need to provide the required details, including the property’s title number and the names of the joint tenants. It’s crucial to ensure the information is accurate and the form is signed by all parties involved. We recommend following a step-by-step guide to avoid common mistakes.
What are the implications of severing a joint tenancy on inheritance tax?
Severing a joint tenancy can have significant implications for inheritance tax. By converting to a tenancy in common, you can ensure that your share of the property is passed on to your chosen beneficiaries, potentially reducing inheritance tax liability. However, it’s essential to consider individual circumstances and seek professional advice.
Can Form SEV be reversed after submission?
Reversing a severance of joint tenancy can be complex and may require the agreement of all parties involved. It’s crucial to understand that once Form SEV is submitted, it may not be possible to reverse the decision without significant legal and financial implications.
What happens after submitting Form SEV?
After submitting Form SEV, the Land Registry will update the property’s records to reflect the change from joint tenancy to tenancy in common. This change will be recorded, and the property will be held according to the new ownership arrangement.
When should I consult a solicitor regarding Form SEV?
It’s advisable to consult a solicitor when you’re unsure about any aspect of completing Form SEV or if your situation involves complex legal or financial considerations. A solicitor can provide guidance tailored to your specific circumstances, ensuring that your interests are protected.
How does severing joint tenancy protect my assets?
Severing joint tenancy can help protect your assets by converting your ownership to a tenancy in common, allowing you to control your share of the property and pass it on to your chosen beneficiaries. This can safeguard your assets against creditors and care costs, providing greater security for your family’s future.
What is the difference between joint tenancy and tenancy in common?
Joint tenancy is a form of co-ownership where two or more individuals own a property together, with the right of survivorship applying. Tenancy in common, on the other hand, allows individuals to own a property in shares, which can be unequal and can be passed on to beneficiaries upon death. Understanding the differences is crucial for deciding which form of ownership is best for your situation.
Form A Restriction: Wording, Purpose, and How to Download and Submit Form SEV
Severing a joint tenancy changes how you and your co-owner hold the legal title to your property, but the severance only becomes fully protected on the registered title once a Form A restriction is entered at HM Land Registry. Understanding the relationship between the severance notice itself and the resulting restriction is a key step many guides overlook.
What Is the Form A Restriction and What Is Its Exact Wording?
A Form A restriction is a standard entry placed on the Proprietorship Register of your title at HM Land Registry. Its purpose is to prevent a sole surviving owner from disposing of or mortgaging the property without appointing a second trustee — thereby alerting any future buyer or lender that the beneficial ownership is split and that overreaching provisions apply.
The prescribed wording of a Form A restriction, as set out in Schedule 4 of the Land Registration Rules 2003, is as follows:
“No disposition of the registered estate by the proprietor of the registered estate, or by a trustee for sale, under which capital money arises is to be registered unless authorised by an order of the court or unless the disposition is made by at least two proprietors of the registered estate or a trust corporation.”
In practice this means that if one joint owner dies after the tenancy has been severed, their share does not automatically pass to the survivor. The restriction signals this to the Land Registry and to any conveyancer acting on a future sale.
How Form SEV Works Alongside the Form A Restriction
Form SEV is the prescribed notice used to sever the joint tenancy and simultaneously apply for entry of the Form A restriction on the register. The two steps are typically completed in a single submission. The version currently available from HM Land Registry was last updated in August 2023, so any older PDF you may have saved should be discarded in favour of the current version.
Once Form SEV is lodged, HMLR will generally enter the Form A restriction on the title and send written confirmation to both registered proprietors. In our experience, it is prudent to retain a copy of the completed Form SEV alongside your updated title register as part of your wider estate file.
Where to Download Form SEV and How to Submit It
Form SEV can be downloaded as a PDF directly from the HM Land Registry Form SEV page on GOV.UK. Submission options include:
- Online portal: Applications can be lodged electronically via the HM Land Registry portal, which is the method our team typically recommends for speed and ease of tracking.
- Post: A signed paper form may be sent to HMLR’s primary operations centre; current postal addresses are listed on the GOV.UK page linked above.
As of 2024, there is no Land Registry fee payable for registering a Form A restriction when submitted alongside Form SEV — the fee is £0. This directly addresses a common concern about the cost of the process and means the main financial outlay is typically any professional guidance you choose to take, rather than a government charge.
Severing the tenancy and registering the restriction is, however, only one part of a coherent estate plan. The severance is most effective when combined with updated mirror wills that direct each share as intended, a property protection trust where appropriate, and — particularly for older owners — a Lasting Power of Attorney. Together, these measures can help ring-fence each owner’s nil-rate band, reduce exposure to care-cost assessments, and ensure the property passes as planned rather than by default. We would encourage anyone considering this step to seek advice from a regulated solicitor or qualified estate planner before proceeding.
Common Questions About Severing Joint Tenancy
Why would someone sever a joint tenancy?
The most common reasons are tax planning and asset protection. Under a joint tenancy, the right of survivorship means the property passes automatically to the survivor, which may waste the deceased owner’s Inheritance Tax nil-rate band of £325,000 (2024/25) — or up to £500,000 where the Residence Nil-Rate Band applies — if the estate would otherwise benefit from two separate allowances. Severance converts the ownership to tenants in common, allowing each owner to direct their share by will, potentially into a property trust, so that both nil-rate bands can be utilised across two deaths. Protection against future care-cost assessments and creditor claims is another motivator, though the effectiveness of any such planning depends heavily on individual circumstances and timing.
Can you sever a joint tenancy after death?
No. Severance must take place during the lifetime of both owners. The moment one joint tenant dies, the right of survivorship operates automatically and the surviving owner becomes the sole beneficial owner; there is no legal mechanism to retrospectively sever a joint tenancy after that point. This is why timely action matters, particularly where one owner’s health is deteriorating.
How much does it cost to change from joint tenants to tenants in common?
The Land Registry fee for entering a Form A restriction alongside Form SEV is currently £0 — there is no government charge for this specific registration as of 2024. Any cost you incur will typically relate to professional advice or will-drafting services. Given the IHT and asset-protection implications, taking professional guidance is generally advisable, and that cost should be weighed against the potential tax savings or protection benefits achievable.
What is the wording of a Form A restriction?
The prescribed Form A restriction wording, drawn from Schedule 4 of the Land Registration Rules 2003, reads: “No disposition of the registered estate by the proprietor of the registered estate, or by a trustee for sale, under which capital money arises is to be registered unless authorised by an order of the court or unless the disposition is made by at least two proprietors of the registered estate or a trust corporation.” This standard entry prevents a sole survivor from transferring or mortgaging the property without appointing a second trustee, thereby protecting the beneficial share of the deceased co-owner.
What is a declaration of severance?
A declaration of severance — sometimes called a notice of severance — is a written statement by one or more joint tenants expressing a clear and unequivocal intention to sever the joint tenancy and hold the property as tenants in common instead. It may be a unilateral act by one owner served on the other, or a mutual agreement signed by both. Form SEV, when completed and submitted to HM Land Registry, incorporates this declaration and triggers the simultaneous registration of the Form A restriction. In our experience, having a clear written record of the severance — retained by all parties and their solicitors — is essential to avoid later disputes about when and whether the severance took effect.