An occupancy in common is a kind of joint ownership of residential or commercial property and land in the UK.

There are 2 types of joint ownership of houses and land in the UK. Those two types of joint of ownership are called joint renters and tenants in typical. How you own as a joint owner is really important - particularly on death. Here, we describe the tenancy in common.

What is an occupancy in common?

A tenancy in common is the legal concept whereby joint legal owners of land in the UK own unique different shares of any one piece of and or residential or commercial property.

Does an occupancy in common need to be equivalent shares?

Unlike a joint occupancy, renters in common can hold their shares in whatever proportion they please.

What occurs when a tenant in typical passes away?

You MUST have a will to deal with your share of the residential or commercial property owned as renters in typical. Failing that, the guidelines of intestacy will apply and the law will choose who gets your share of the residential or commercial property.

Unlike an occupancy in typical (being covered here), a joint tenancy will pass immediately by a legal principle called the right or survivorship. This concept does NOT apply to occupants in typical - so please MAKE A WILL ...!

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What is the distinction in between occupants in typical and an occupancy in common?

Tenants in typical is the owners themselves, whereas an occupancy in typical is the legal principle (not the individuals).

Is there a limitation on the variety of occupant in common joint owners?

There is no limitation on the number of renter in typical owners.

How do I understand I own as a renter in typical?

Confirmation of ownership as occupants in typical is held at the Land Registry. Unfortunately, the law being the law it is not basic! There is a section of the Land Registry records called the Proprietorship Register. If you own as occupants in common there is something called a 'constraint' in this part of the Registry records. If in doubt - speak with your conveyancing lawyer!

What is a tenant in common constraint?

The tenancy in common limitation is the information held at the Land Registry that verifies you are occupants in common (and NOT joint tenants). It is included within what is called the Proprietorship Register. If in doubt - speak with your conveyancing solicitor who will confirm what kind of joint ownership you hold your residential or commercial property.

Tenancy in common shares can be any percentage.

How do I define my occupancy in common share?

Unlike a joint occupancy (which is instantly equivalent shares of all owners), an occupancy in typical enables you to own shares in unequal amounts. In the lack of evidence to the contrary, then there is still an assumption in law that the joint owners holding as tenants in typical will be equal owners (so eg 50/50 if two owners).

If you want to own in anything other than equivalent shares, you need to execute and appropriate declaration setting out the shares to be held. This is sometimes complicated for example where one celebration is meaning to pay more toward the upkeep, advancement or maintenance of the residential or commercial property. Our skilled conveyancing lawyers can guidance you specifically in relation to your own needs on this point.

Can I change from renter in typical to joint tenant?

To change from occupants in typical to joint renters, the renters in common constraint hung on the Land Registry Proprietorship Register should be removed. However grand that noises (sorry!), it is in fact a fairly easy process that a person of our conveyancing lawyers can help you with. The significant part of that procedure is NOT the change itself, however the guidance that chooses it. The implications of holding either as occupants in common or joint tenants is huge - particularly on the death of a joint owner. And so, you must make sure that any modifications you make to the joint ownership of land you own is finished with care and on an informed basis.

How do I change from joint renter to occupant in typical?

It is a relatively uncomplicated procedure for your conveyancing solicitor to change your joint ownership if for any factor you choose you wish to. The procedure to change from joint occupants to renters in typical is called 'severing joint occupancy'. This involved putting the occupants in common constraint on the Proprietorship Register at the Land Registry. Speak with one of our conveyancing lawyers for aid with this.

What are the benefits of occupancy in typical?

The primary benefits of owning as in common is that you get to define what shares you own (ie the shares do NOT have to be equal as with a joint occupancy). You can likewise present your share on death to somebody besides a joint owner, and even into a trust (if that suits your scenarios).

Does a tenancy in typical save inheritance tax?

No, an occupancy in common itself does NOT conserve estate tax. However, it does possibly help with the chance to do so. For example, there are numerous estate tax (IHT) savings plans which might need you to present your share of a jointly owned residential or commercial property on death to someone or something (eg a trust) on your death. This can just be done when holding the joint ownership as renters in common.

So the occupancy in typical itself does NOT make any IHT savings, but it might assist in tax savings preparing schemes. Gifting a residential or commercial property (particularly your home) to anybody besides the making it through owner may well be a substantial step and you must always approach any plan with care, and having actually taken professional independent legal advice.

Does an occupancy in common prevent care home charges?

The simple ownership as tenants in common does NOT prevent care fees. It does however facilitate the opportunity to check out care fee planning for example with things such a residential or commercial property trusts. This location of the law is often (and maybe glibly) over simplified when it is fact a location cluttered with problems and conflicts. Gifting your share of a residential or commercial property to anyone whether during your life time or on death is a huge step, and one that ought to not be taken lightly. Please take professional independent legal guidance from a solicitor and or monetary organizer certified to recommend you on all of the benefits and drawbacks of this area.

Got a concern about tenant in typical?

Whatever your position, if you have a concern about tenants in common, or any other associated topic that we have not covered here - do please reach one of our expert lawyers. You can email us property@qlaw.co.uk, or telephone us on 03300 020 365.

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About the Author: Neil Quantick 8 Comments 1. Anonymous
2nd February 2024 at 3:10 pm- Reply We are believing of an occupancy in typical agreement as
my partner would like to buy a share

in my home(

say 25%) This would work well for us as we both have kids from previous marriages and would suggest their inheritance is safe. if he paid me this cash straight would it be taxable? or does

it have to be paid off the mortgage?-. Team QLAW! 2nd February 2024 at 3:41 pm- Reply. Thank you for your question- there is really rather a lot to cover off here! So, to do it effectively, you need to each get independent guidance to secure your

different (and various) interests - od as that sounds at a point at which you are devoting to each other in a meaningful way! Yes, you would need to hold as occupants in common, and you would require some sort of statement setting out who owns what now, and after that progressing too. Your mortgage lender is likely to have something to say, and you need to call them to ask what their processes are. They may merely consent to your partner being contributed to the title and mortgage, or they may even demand a fresh mortgage application. Yes, reliant upon the' numbers 'Stamp Duty Land Tax( SDLT )may be chargeable. Lastly, if you wish to secure future inheritances (you discussed children from your particular previous relationships ), then you MUST make wills. These are most likely to need some type of
will rely on. QLAW can possibly aid with the above, so do scream if you would like to discuss it
further. Meantime, do bear in mind that our legal guides are simply that, and they should not be taken as legal suggestions specific to you. Some further reading that you might find handy: Will Trusts. Second marital relationship and the household home. what is a life interest trust? 2. Anonymous 5th March 2024 at 7:13 pm -Reply. Please can you answer a concern for me.In 2021 after my husbands death l called land windows registry to eliminate my husbands name as a proprietor but a number of years ago we did tenants in typical naming my son.l can't discover anything in my will specifying this.l do have Restriction shown on register which l do not understand but feel that his name ought to be on register.l am worried as he resides in your house with me that need to all my funds be utilized on Retirement home fees he would have to sell. l would b3 grateful if you could clarify that he would own half the residential or commercial property and therefore safe.He is named in my will as sole beneficiary.Many thanks

-. Team QLAW! 7th March 2024 at 11:34 am - Reply. Hi and thank you for your exceptional concern.

The assessment of properties is a concern of reality, and as such if your son now owns half he owns half! Obviously, this should be shown correctly in the legal title, and if it is not you might wish to put this best quicker than later on? This is something QLAW and assist with - please contact our residential or commercial property team at property@qlaw.co.uk!.?.! Meantime, you may find this article recently published on our website of interest. It looks( in some depth) at the concern of' care charge planning' Thanks again for connecting with your legal inquiry. Do

let us understand how you found your QLAW experience Reviews 3. Madelaine 15th March 2024 at 1:34 pm- Reply. Hello. I


wish to purchase my first home nevertheless as a single party I am unable to borrow as much as a joint occupancy. If I had the ability to divide with my partner 75%( me )and 25%( him) does this mean we can get separate mortgages and I will have the ability to get a greater LTV ratio? Thank you 4. sarah 25th June 2024 at 10:31 am -Reply. my partner and I paid equal deposit

of ₤ 7500 which was 7.5% each of home rate when we purchased house in 1997. I then paid all mortgage payments and spent for a loft extension and double glazing. the other celebration contributed no, I settled the mortgage with an inheritance in 2005. I have used to change from joint to in common will I have a case to claim a large portion in court. I have proof all payment came out of my account and other celebration never worked 5. Andre fifth August 2024 at 9:01 am - Reply. Hi,. I have a share in your home I reside in which is Tenants in Common. I have practically one

third share of the residential or commercial property. If among the other share holders wants to offer their one third share, will the entire house have to be sold, i.e. will I have to vacate the residential or commercial property? lots of thanks Andre-. Neil Quantick 5th August 2024 at 9:22 am- Reply. Hey Andre, and thanks so much for reaching out to QLAW. Whilst we can not advise you specifically on your specific circumstances,
this question
does show up from time and time and is basically one of a practical nature. If you( or anybody else) can' buy out' the
share wishing to leave then terrific. If you can not, then there is no choice but to offer.