can an existing joint tenancy be changed into a tenancy in common?

Tastebuds

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If a couple has an existing joint mortgage, can a joint tenancy be changed into a tenancy in common?

If then the couple gets married and has a joint tenancy, how will inheritance work in the case of death?
 
You what?

What's with all the messing? What are the intentions? Not benefit each other before marriage but benefit each other after marriage?

In simple terms, if a property is held by two people as joint tenants, on the death of one, the property passes automatically to the other. There may be tax implications if they are not married or civil partners.

If a property is held by two people as tenants in common, on the death of one, the property passes into their estate, be that by way of will or intestacy.

If you read up on it, you will see the problems created by people not thinking through what it is they want to do and wreaking havoc down the line.

mf
 
Thanks for your reply mf1!

Yes, it sounds very messy indeed... Let me explain it a bit more to see if it makes more sense (at least the context)
  • Current situation: unmarried couple with a joint tenancy based mortgage. So, property owned 50-50 and property passes to the other in case of death
  • Context: my partner can pay off the mortgage in one lump sum, and we would be both happy to reflect that legally
  • Desired situation: We want to marry, have both full ownership of the house and benefit from marriage rights: inheritance, taxes...
  • Preventing future problems now that we can both speak unemotionally. If we break up in the future, we would like to own the same percentage of the mortgage we previously paid (If I paid 30% of the mortgage, I own 30% of the house)

That is the context of the question. I was under the impression that a tenancy in common instead of a joint tenancy would be adequate to the above context, but I might be obviously wrong

Thanks
 
There are more issues at stake here than simply changing a joint tenancy to a TIC (which is possible). You would be better advised by speaking to a solicitor and including your full rationale as the future impact of a break-up would need to be properly addressed!
 
There are more issues at stake here than simply changing a joint tenancy to a TIC (which is possible). You would be better advised by speaking to a solicitor and including your full rationale as the future impact of a break-up would need to be properly addressed!

Agreed.

Tastebuds, you're all mixed up. There is a property. House ownership. Then there is a mortgage on the property. If one person pays off the whole mortgage, they are essentially gifting a chunk of money to the other with potential tax implications.

mf
 
Thanks 44brendan and mf1 for your replies

Yes, I will talk to a solicitor. I wanted to gather a better understanding before arranging a solicitor appointment

I never thought about the tax implications of paying off the whole mortgage. Thanks for the heads up.
I still don't fully understand the different tax implications depending on joint tenancy vs TIC , married vs unmarried or the moment at which you pay the mortgage (before or after marrying...)

Thanks
 
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