A severed tenancy agreement is a term used to refer to a legal process where a joint tenancy agreement is converted into a tenancy in common. This process is also sometimes referred to as a severance of tenancy or a tenancy partition.
When two or more individuals hold a joint tenancy agreement, they own the property equally. This means that in the event of one of the tenants passing away, their share of the property automatically transfers to the other tenant(s). However, in a severed tenancy agreement, each tenant owns a specific share of the property, which they can sell, mortgage or will to someone else.
A severed tenancy agreement can be a useful tool for individuals who want to protect their share of the property or have specific plans for their share after they pass away. This is particularly true for individuals who are not married or in a civil partnership.
To sever a joint tenancy agreement, all tenants must agree to the change, and the process must be done in writing and executed correctly. The agreement must specify how the shares of the property will be divided, and each tenant must receive a copy of the agreement.
It is essential to note that severing a joint tenancy agreement can have significant financial and legal implications. For example, if one tenant wants to sell their share of the property, they must obtain the agreement of the other tenant(s) before proceeding. Additionally, if one tenant passes away, their share of the property will no longer transfer automatically to the other tenant(s).
In conclusion, a severed tenancy agreement can be a valuable tool for individuals who want to protect their share of the property or have specific plans for their share after they pass away. However, it is crucial to consult with a legal professional before proceeding with this process to ensure that it is done correctly.