Scientist Samantha Ho, 39, was found in Curlew Place, St Neots, Cambridgeshire, on Saturday. Witnesses said her head and body were found separately.
A post-mortem examination concluded she died from "multiple cuts to the neck".
Timothy Allen, 40, of Curlew Place, has been charged with murder and is due at the Old Bailey on Friday.
Ms Ho, who has family links to the Harrogate area, was found after armed officers were called by the ambulance service and forced entry to the house.
"We came out and there was a big police presence. We came out to see what was going on and were asked to go back in," neighbour Ian Worsfold said.
Mr Allen was arrested on suspicion of murder and was initially taken to Hinchingbrooke Hospital with what police described as a serious but not life-threatening injury.
He was later released from hospital and was charged with murder on Monday.
"Everyone's just stunned, absolutely numb," Mr Worsfold said.
"It doesn't happen in places like this. It's something that happens in soap operas. It's been like living in a soap opera for the last few days - it's just absolutely horrible."
He said Ms Ho and Mr Allen had lived in the close "for a couple of years".
"They used to socialise, we've got a very close-knit community here," Mr Worsfold said.
"I've never known shock like this.
"It's devastated the whole community. An awful lot of people have been walking around in a daze thinking you're going to wake up, but you're not going to."
A Cambridgeshire Police spokesman said the death was being treated as an isolated incident and no-one else was being sought.
"Officers are in contact with the victim's family and they are being kept up-to-date on the inquiry," he said.
A dog was also killed in the incident, it emerged.
Inquiries are continuing at the property.
The death of a woman understood to have been found beheaded in a house has "devastated the whole community", a neighbour has said.