David Mensah

Registered with Property118.com
Saturday 14th June 2014


Latest Comments

Total Number of Property118 Comments: 69

David Mensah

7 months ago
Labour Councils Teach Us How To Invest In Commercial Property !

buying properties through an offshore company, a standard technique to avoid also IHT, has recently become much harder for individuals because of ATED and new rules that bring poperty assets structured this way within HMRC reach.... Read More

David Mensah

11 months ago
Remortgage now to avoid PRA rules from September?

Hi Annie,

I'm having the same issues as you, but remortgaging a property we just fixed up (and so added 350K of value to).

My banker is claiming the new rules came in in July, but what I have now realised is that that is an internal bank policy because they want to get everyone up to speed by Sept. So effectively the rules are already in place.

Everything has slowed down because bank staff are nervous, or at least that is the impression I am getting.

Also, be prepared to be asked an enormous amount of detail. If you have a portfolio, this can be plenty complicated, and even harder for bank staff, who are not trained accountants, to understand.

Also note that because affordability now also includes tax liabilities, which will change post S24, they are also asking me for lots of tax info.

All a huge pain and I am wondering if this is part of a gov't strategy to slow down the BTL market.

I also wonder if in future we may need to rely on our accountants to do some of this prep work for the banks?

Curious what the mortgage professionals make of this.... Read More

David Mensah

A year ago
Charitable gifts and section 24

Reply to the comment left by "Paul Mullally" at "08/05/2017 - 13:32":

thanks Paul -- just making sure I understand, you are saying we can get a double benefit now with section 24 because my basic rate has gone up.... Read More

David Mensah

2 years ago
Freeholders refuse to transfer title trying to cause distressed sale?

Does anyone have experience using Bernie Wales? His website looks good.

I bought/sold a leasehold flat with a predatory freeholder a while back and spent enormous amounts of time trying to get reliable information. Initially I didn't know very much about how the UK system works (it is badly set up if you ask me) and I got some initial help with LEASE (the gov't quango), but they are very slow and only offer vanilla advice that you can more or less figure out yourself, see also the critique here http://www.leaseholdknowledge.com/lease-recruiting-pandering-sectors-commercial-interests

In the end I made a lot of money by sorting everything out. But there was over 20 years of conveyancing mistakes, and other leaseholders lost a lot of money to the freeholder. Various solicitors I worked with gave conflicting advice. Luckily the freeholder's solicitors were also wrong, which is why I was able to circumvent him and sort things, but it was a fraught process.

I would have paid a lot of money if I could have found an expert who *really knew* what was going on. It would have saved me a lot of time and frustration. But my experience is that finding reliable advice is difficult.... Read More

David Mensah

2 years ago
Deed of Trust CONFUSION! HELP!

Stuart, I think you need to take legal advice on this.

My reading of https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9230

is that a declaration of trust itself is enough, but it looks like Steve has received advice that a restriction on the land registry title needs to be there also. But I don't think this is necessarily the case.

One reason is that on the HMRC website they give examples where, for example, a couple claim that there is a verbal equivalent of a DoT. HMRC says that if this is the case evidence needs to be provided.
see
https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9550
and
https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9140
which says:
"In the case of Stack v Dowden [2007] 2 All ER 929, Baroness Hale of Richmond, who gave the leading judgment, commented on the general principle that ‘The onus is upon the person seeking to show that the beneficial ownership is different from the legal ownership’ and ‘The burden will be on the person seeking to show that the parties did intend their beneficial interests to be different from their legal interests, and in what way. This is not a task to be lightly embarked upon.’"

My take would be that it would help a lot in providing evidence if a restriction proving that you hold as tenants in common is on the land registry, but that you still need a DoT behind that to have non 50/50 ownership. But you can probably also argue that you didn't want trouble with mortgage companies and so didn't put the restriction on, and as long as you have a properly executed DoT, with dates etc.. then that should be enough evidence.

But again, this is very tricky stuff that is best left to a good professional legal expert.... Read More