Joint Ownership

[pinkjudy45]

We have a 2 properties (which we rent out) which have been bought as joint tenants (i.e. 50% each), can this be changed so that just one person owns a property each?

[Meaghan27]

Joint tenants means that both owners own the whole of the property and have equal rights to the property. Tenants in common means each party owns a percentage of the property in their own right. If the houses are owned without mortgage its an easy process to change ownership. Mortgaged properties are more difficult and you may have to reapply for mortgages .

[Buenchico]

As Meaghan27 indicates, if there's any form of charge against one or both of the properties (such as a mortgage), things can get tricky. For example, if there's a mortgage, it will almost certainly be 'joint and several', meaning that the lender is free to pursue either party for their money if the need arises. A lender would probably be unlikely to accept the transfer of such a mortgage into a single name, as it would mean that there was then only one person that they could chase for their money.

However if there are no mortgages, all that's needed is for a couple of deeds of transfer to be drawn up, a couple of copies of form TR1 to be submitted and then all of those documents to be sent to the Land Registry, together with the appropriate fees.

[Peter Pedant]

yes is the short answer
but the details vary see above
and the tax position

If you are married then you can transfer properties with each other without a tax charge. This is likely to be the case as it is difficult to get a joint mortgage in the first place

Otherwise the transfer will count for a CGT charge ( which may be Nil after all that)

AND when each of you sell the single house, if you are married then you transfer BACK 50% equity so that you can both take advantage of the tax free quota
so over all, it may not be worth it.

But yes, the answer is yes. ( I did this: but the properties were not mortgaged. Tax man didnt seem to mind - after all he got his tax - it didnt go plooof! and disappear.)

from what we have said - you have to calculate whether it is to the advantage of both

[Peter Pedant]

the answer in Law is
you split a jointure by sending letter to the other side

It can be any document EXCEPT .... a will.