DEED OF SEVERANCE

Unlock clarity and peace of mind with a Deed of Severance in the UK. This powerful legal tool allows co-owners of property to formally sever a joint tenancy, transforming it into a tenancy in common and ensuring that your share of the property can be passed on according to your wishes. By setting up a Deed of Severance, you protect your interests, prevent disputes, and gain control over your assets, providing certainty for you and your family in the future. It’s a simple step that delivers long-term security and confidence in your property arrangements.

LETS HAVE A MORE DETAILED LOOK AT A DEED OF SEVERANCE: –

A Deed of Severance is a legal document used to change the way a jointly owned property is held, from Joint Tenantsto Tenants in Common. This change is important for estate planning, inheritance, and sometimes for divorce or separation.

Joint Tenants vs. Tenants in Common

Feature

Joint Tenants

Tenants in common 

Ownership

100% shared equally

Specific shares (e.g. 50/50, 70/30)

On Death

Passes automatically to the other owner(s)

Passes according to your Will or intestacy rules

Can Leave in Will?

❌ No

✅ Yes

Suitable for?

Couples with shared intentions

People with separate financial interests or estate planning goals

What the Deed of Severance Does:

  • Legally changes the ownership from Joint Tenants to Tenants in Common
  • Lets each person own a defined share of the property
  • Ensures your share can be left to someone else in your Will, such as children or a trust

Why Create a Deed of Severance?

Estate Planning

  • To leave your share of the house to someone other than your co-owner (e.g. children, trust)
  • To support Will-based planning — e.g. using trusts to reduce care fees or inheritance tax

Separation or Divorce

  • To formally split ownership into shares before selling or settling assets

Care Fee Planning

  • To prevent your full property value being counted for care home fee assessments

How It Works:

  1. The co-owners sign a Deed of Severance
  2. It is often followed by submitting a Form SEV to HM Land Registry
  3. Your title register is updated to reflect the change (still shows both owners, but as Tenants in Common)

 Things to Consider:

  • Each owner should make a Will after severing the joint tenancy
  • If there’s a mortgage, it doesn’t prevent severance — but legal advice is wise
  • Both owners must agree to sever — one can do it unilaterally, but the other must be notified

Example:

John and Sarah own a house as Joint Tenants. John wants his 50% share to go to his children, not to Sarah if he dies first.
They sign a Deed of Severance, switch to Tenants in Common, and John updates his Will to leave his share to the children.