Selling to the other Joint Tenant

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    Selling to the other Joint Tenant

    Hi. Not sure if this is something you could advise on. But if so I'f be grateful for the help. My ex and I own a flat as Joint Tenants and we are both aiming to buy the other out. We have a Deed of Trust, which wrongly refer to us as Tenants in Common (not sure if this matters?). It states that either of us can force the sale and we must have first right of refusal to buy (it doesnt say who has first right). It does however say that my ex has first right to live in the property until its sale. (however she has already moved out to her other property). The Deed of Trust says the sale must go through the conveyance proceedure outlined in our Lease. This states that we must make an offer of sale to the Freehold company and its Leasholders at the the market rate. Allowing six months for that process to be considered.

    My question is, is a sale from one Joint Tenant to the other, not a sale in this context. Meaning it wouldnt have to go through this process as it is more a transfer of ownership?

    Also and seperately. Can the Freehold company and its members ever prevent a sale on the grounds of discrimination? Such as the simply that the majority of members or directors might simply vote against them being a Leaseholder in that block.

    Cheers

    Mark

    #2
    We have a Deed of Trust, which wrongly refer to us as Tenants in Common (not sure if this matters?).
    The register of title should indicate that fact by using the standard restriction as referred to on the Land Registry web-page.
    https://help.landregistry.gov.uk/app...-which-am-i%3F
    Joint Ownership - Tenants in Common - which am I?
    We register the legal ownership and the register is not definitive re such detail and the term 'tenants in common' is not referred to on the register.

    Joint owners may indicate that they wish to hold the property as tenants in common when they are registered or may decide to sever their joint tenancy at some stage.

    When this happens, and where the land is registered, we can register a Form A restriction on the registered title, namely
    'No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court'


    The Form A restriction does not itself change the ownership from beneficial joint tenancy to tenancy in common. The restriction only reflects the request or change made.
    The party who is to become the sole owner could agree the price to be paid to the other party.
    Then draft a new deed of trust showing that the tenants in common will own with 99.9% and .1% shares in the property following the payment of the agreed sum to the other party.
    It will also be sensible to include a clause that the .1% tenant in common will have no right to occupy the property as from the date shown on the new Deed of Trust.
    It would also be sensible that the party owning the minor share signs a form TR1 with the signature witnessed.
    The TR1 will remain with the deed of trust in the possession of the major share holder for when the time comes to sell the flat.

    That is not a sale of the leasehold title, nor will it require any notification to Land Registry because the same two names will remain on the register.

    Comment


      #3
      Thanks for the advice. I'm still in the dark as to what our Joint Tenancy means. I can see from or Title Register that we are indeed Joint Tenants. But we have a Deed of Trust. Is that contract made irrelevant by the Joint Tenancy. And if we did decide to sever the Joint Tenancy does that need to be agreed by each Tenant or can be forced on the basis of the Deed of Trust. Basically does the Deed of Trust overide everything?

      And to your point about changing ownership to 99.99% etc. What if one party does not want to retain any ownership? Does that require the transfer to be dealt with as a formal sale? Even if it is ordered by a Court?

      Comment


        #4
        The earlier suggestion just leaves the register as it is now, with the contact address remaining as the current address, so once the second party moves out, no one will be contacting that party regarding Land Registry matters.

        An application to Land Registry to have the Type A restriction placed on the register, because the joint tenancy has been severed is not a transfer of ownership. The new Deed of Trust is the creation of the shares allocated to each party in order that a change in the register is not recorded.

        If you want to have a single name shown on the register of title that will be a transfer of ownership with a signed and witnessed TR1 form provided with an application to Land Registry to register the transfer.

        Comment


          #5
          First of all you need to make sure you are Tenants in Common, and not joint tenants. If joint tenants you will need to sever the tenancy to create Tenants in Common.
          Once thats in place you can buy the other persons share out. Once done fill out a TR1 to register the transfer with LR.

          You will also need to fill out a RX3 form to remove the Form A restriction.

          Comment

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