Tenants is Common refers to a form of property ownership in the property can be owned by two or more people who may be related or unrelated to one another.
The main difference between Tenants is Common and Joint Tenancy is that in a Joint Tenancy the interest held by a tenant will pass on to the other tenant at the time of death, but in a Tenants is Common ownership it will pass on to the tenant's heir.
Any number of individuals can be involved in a Tenant is Common property ownership.
It is to be noted that in a Tenants in Common ownership, each owner own his or her share of the property.
The property sharing does not necessarily have to be 50-50 percent.
It can be any percent.
Each owner is able to leave their share of the property to their designated heirs.
It enables one member in a couple to pas their share to their children, in the event that he or she passes while the other continues to live in the property.
It can also help to prevent a person from having to sell their property in the event that he or she has to go into long-term care.
Today, this form of property ownership is quite common because it enables couple to considerably reduce their inheritance tax liability.
They can pass on the value of their property in two portions to their heirs.
Each person can benefit from the others inheritance tax allowance.
If you are planning to get into such a property ownership, it is best to take legal advice before proceeding towards owing the property.
Joint tenant ownership can be changed into a Tenants in Common ownership.
The process requires that owners in a Joint ownership serve the other with a notice of severance.
This document can be prepared by a legal advisor or a solicitor.
It can also be downloaded online.
After the notice of severance has been served by parties involved in the Joint tenant ownership, they must inform about it to the Land Registry in writing so that it legally becomes effective.