Joint tenancy and tenants in common or severance of tenancy are two types of property ownership methods. Joint tenancy is a type of property ownership by two or more individuals together. It differs from other types of co-ownership in that if one owner dies, the surviving joint tenant immediately becomes the owner of the whole property. This is called a Right of Survivorship. This type of ownership is generally used by married couples.
Another type of co-ownership is known as tenants in common or severance of tenancy in which also an asset is owned by two or more individuals together, but without the rights of survivorship. This is the major difference between joint tenancy and tenants in common - the former involves the rights of survivorship and the later does not.
Thus, in the tenancy in common or severance of tenancy, upon the death of one co-owner, his or her interest will not pass to the surviving owner or owners, but will pass according to his or will. If there is no will, his or her share will pass according to the law determining heirs. This method is suitable for those co-owners who want to specify their shares in the property.
In case you wish to own a property as tenants in common or severance of tenancy, Easylawyers can prepare a separate Deed setting out those shares. According to the client's requirements, the Deed can also determine obligations to contribute towards outgoings and what is to happen if one of you wishes to leave the property. This type of Deed is called a Declaration of Trust and the charge will be £99.00, if it is done at the time of buying.
Although, a Declaration of Trust is normally binding on the parties entering into it, the court has the authority to exercise its discretion regarding the distribution of assets at some occasions. This specially happens in a breaking down of marriage; where the court may exercise this discretion in the redistribution of assets between two spouses.
Easylawyers can help you in joint tenancy, severance of tenancy, tenants in common, declaration of trust via online tenancy services in London and UK.
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