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Wednesday 9th September 2020

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11:26 AM, 9th September 2020, About A year ago

To Trust or Not To Trust - Transferring To Spouse

Sorry to Hijack, unmarried couple (A&B) are separating and currently jointly own a property with a joint mortgage.

A will port the mortgage into own name with same mortgage provider and the Title deeds will be updated into the sole name of A.

B cannot get the property they want without A also being on the mortgage application. A is happy to be on the mortgage for B as part of the split (all being done on good terms).

The proposed structure is for A to be a Bare Trustee with the legal title being to B after the 2 year fixed period. When B would either remortgage or port into own name. On the basis of more equity and higher income.

As A will be a part legal owner and jointly and severely liable for the mortgage (though as a trustee) but as B is the beneficial owner of the property my understanding is there would be no SDLT surcharge implications.

I assume lenders would be OK with this structure as the legal ownership is A & B as far as they are concerned is unchanged. Both parties legally responsible for the mortgage liability. This is simply to get the correct SDLT treatment.

Assuming I am correct with the above, any contact for the conveyancing, Trust and SDLT work. Preferably through an email rather than form submission so that I can copy and paste.... Read More