Lender restriction on title prevents beneficial transferMake Text Bigger
A small family Trust wants to buy an income producing BTL property from a family member by way of a Beneficial Transfer to both avoid SDLT, (as the property remains legally owned by the family member), and to preserve the mortgage held by the family member, (as a new lender would require the Trust to be a full legal owner, thus incurring SDLT).
However, the existing lender has registered a restriction on the Title preventing the use of the Beneficial Transfer, and will not remove it.
So, if the current owner was to pay off the current mortgage, and seek a new mortgage – Which lenders should he approach?
Generally the requirement for this restriction only becomes apparent once the mortgage offer has been made and accepted, fees paid, and the solicitors instructed?
Which lenders don’t put a restriction on the title as a condition of loan?
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