20:38 PM, 10th August 2017, About 7 years ago 3
I always make this clear to clients who have and point out that whilst the Declaration of Trust is completely invisible to anybody unless they declare it, the risk is that if a lender with such conditions in their T&C’s was to find out that beneficial interest had been transferred, technically, they would be in default. However, there is no history of any mortgage lenders having ever called a loan in on this basis. Nor has there ever been a Court case where a lender has been granted possession or appointed LPA receivers for a breach of such conditions. Given that all conveyancing solicitors have at some point implemented Declarations of Trust you have to wonder why this is?
This also makes me wonder whether CHL and Fleet mortgage conditions prohibiting the transfer of beneficial interest are legally enforceable?
What business is it of a mortgage lender who gets the benefit of capital appreciation and rental profits if it has no effect on their security whatsoever?Show Book a Tax Planning Consultation
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