Severance of tenancy by mutual agreement is a legal process used in estate planning to change the way that co-owners of a property hold title. It is a simple and relatively inexpensive way for co-owners to convert a joint tenancy into a tenancy in common.

When a property is owned as a joint tenancy, each owner has an equal share in the property and there is a right of survivorship. This means that if one owner dies, their share automatically passes to the surviving owner(s). In contrast, when a property is owned as a tenancy in common, each owner has a distinct share in the property and there is no right of survivorship. This means that if one owner dies, their share will pass to their heirs or beneficiaries.

By severing a joint tenancy and converting it to a tenancy in common, each owner is able to specify their own beneficiaries, which can be an effective estate planning tool. It also allows co-owners to have more control over their share of the property, which can be useful in cases of divorce or disagreements between owners.

To sever a joint tenancy by mutual agreement, all owners must agree to the change and sign a written declaration of trust. This declaration should be recorded with the Land Registry to make the change effective.