Joint tenants or tenants in common

These are from my title deeds;

B: Proprietorship Register
This register specifies the class of title and identifies the owner. It contains
any entries that affect the right of disposal.

Title absolute point 1. quotes mine and my husbands name
point 2. quote:

2 The Transfer to the proprietor(s) contains a covenant to observe and
perform the covenants referred to in the Charges Register and of
indemnity in respect thereof.

Does the point 2. mean that we are joint tenants or tenants in common?  I understand that to be tenants in common, the point 2. should have a restriction clause.  
If your reply is that we are joint tenants, please let me know how to change it to tenants in common?  Also
if we wanted to add our two children to be as tenants in common, how would that happen? and would that be considered as gifting the children?

Thank you very much.
 

Arja - point 2 is known as a personal covenant so has nothing to do with TIC
Joint owners can apply for what is known as a form A/joint ownership restriction and many associate that restriction as meaning they have changed to TIC. The linked guidance explains how you can apply for a form A restriction
If the two of you wish to transfer the legal ownership to yourselves and your children (over 18) then our online guidance explains how that can be done. 

Thank you very much Adam.  I think I undestand correctly that currently the deeds are joint ownership. My next question is;

1. if we apply for tenants  in common with our 2 children having 50% and us 2 having the other 50% of the property;

-does it mean that if we specify in our will that on death of one of us (the parents) the other parent one will inherit the death persons share i.e. 25% - the subsequent inheritance tax for property valued over £325K would be counted on only the 50% of parents share and second question:

-if the first parent dying would in their will leave the total 25% of their share to the 2 children, on the death of the other parent the inheritance tax would be calculated from half of the £325K i,e, £162,500

-does adding the children as tenants in common mean that we are gifting half of the property to them?

I hope you understand my questions, it is very difficult to get one's head around the legal text.

Best regards 
Arja

 

Arja - first Qs are not for us to advise on as we don;t deal with wills/IHT etc. I'd strongly recommend you seek legal advice to get the right answers for your scenarios

There are online forums such as Money Saving Expert where such matters are often aired, shared and discussed and which may prove useful. But it's always best to get specific advice re your specific scenario

Tenants in common/% shares relates to your beneficial ownerships. So the value (£s and pence) of the land and property and that can be split so say £200K each

The legal ownership, which we register, can't be split as you can't have half the bricks and half the mortar, half a kitchen etc. So the legal ownership is always dealt with as a whole whether there are two or four of you. 

It's so important to talk through the very unique set of circumstances with a legal/financial adviser as appropriate not only to understand the legal text but also what the actual reality is now and how future events may impact and how. For example when one of the children wants to buy their own property, make their own will or one of you sadly passes away etc etc. There's more to think about than just the property that we register hence wider advice is needed

Hello Adam,
We are now applying the Form A restriction with the SEV form.  I have a few questions as how to fill in the form;

Point 1. Local authority.  I have filled in the St Albans City Council as that is to whom we pay the council tax. Is that correct?  The deed quotes: this title is dealt with by HM Land Registry, Leicester Office.  Why is that? Should that have  been changed to St Albans when we bought the house?  

Point 6. Should that be left completely blank by us?

Point 8. Should we insert the title number after the sentence; 'register of the avove title(s):'

Thank you very much.

Regards 
Arja

Arja - correct re local authority and St Albans
Panel 6 needs to be completed with your names, address and phone/emails as appropriate so we know who is applying
Panel 8 is generic so needs no additions. It's referring back to panel 2 where you have added the title number(s) as appropriate

Thank you very much Adam,

I understand I should have a confirmation of the change in couple of weeks time or so.  Do I then have to ask the Land Registry to send me a copy of the altered deeds, with payment?

Thank you again.

Regards

Arja

Arja - timescales vary so it may not be as quick as 2 weeks but once it's been processed we will write to confirm completion and that the register has been updated as appropriate. 

Adam,
Thank you ever so much for your quick reply again.

Regards
Arja

Hello Adam,

This is a new query for you concerning the HM Land Registry for my son.  He is buying a ground floor maisonette and the HM Land Registry deeds are with the ground and top floor maisonettes.  The solicitors sent him this information under title 'Fraud Protection Service'

quote Once the application for registration is complete, a copy of the title will be sent to you evidencing the change of ownership, the contact addresses provided and the inclusion of the restriction.  We have added the fee of £85.00 plus VAT to your financial statement for providing this service. 

Please note that if you sell or remortgage this property in the future, the lawyer acting on your behalf will be required to provide either a certificate to comply with the restriction or to remove the restriction. You may be charged for this. unquote

What does the last paragraph mean?  What is the restriction, where can it be found? (we have the pre filled TR1 form here, should I send it to you for your perusal?  My son has a two year fixed mortgage and wants to change it to hopefully a better deal after two years, so will the sentence 'or remortgage this property...'  cause difficulties?  How does he get a certificate either to comply or remove the restriction?  Which one is better? and indeed what is the restriction?

Thank you very much.

Best regards

Arja