Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 3 weeks ago 46
I’ve been researching the merits of buying a property as an individual, and creating a Declaration of Trust (DoT) to nominate the beneficial owner as my company.
What I have determined so far is:
• The mortgage lenders take their security against legal ownership ie the individual.
• The legal title at HM Land Registry does not need to be changed when transferring beneficial interests via a DoT
• There is no requirement to advise or seek consent from mortgage providers. This is because their security remains unchanged.
• Form 17 would not be applicable as property is owned by one person a DoT.
I have the following remaining points to resolve
1. Has anyone done this already?
2. If so, what has HMRC said on the topic?
3. With a DoT in place, can the mortgage interest relief be claimed by the company?
4. Can you have multiple properties with BTL mortgages in your own name and would you have a DoT in place for each property?
5. Can a DoT be amended in the future and if so who by?
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