Declaration of Trust a step by step process

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    Declaration of Trust a step by step process

    Hi,
    I am trying to clean my mind regarding to how to do Declaration of Trust.

    Say me and my wife owns a property 50:50 at the present and wants to change to 1:99

    I think this is what we need to do if we want to DIY it:

    1. download a Declaration of Trust.template and fill in with all the needed details.
    2. Inform land registry by filling a form, but I am not 100% sure which form should we use, is it TP1, TR1, AR1 or RX3 and ST5 as someone suggested in some other places?
    3. infrom HMRC with form 17.


    Also is there a time limit on when I need should send the forms to land registry? I know that form 17 has a six month time limit. Does the same apply for land registry forms?

    Many Thanks







    #2
    Actually, I just found this link:
    https://www.gov.uk/joint-property-ow...-joint-tenants

    Seems I don't even need any land register form at all.

    Comment


      #3
      If you don't know what you are doing , you should consult a conveyancing solicitor. Its not an area for DIY.

      Comment


        #4
        Hi,
        I actually think if I can get this right for once myself, I will know how to do this in future without paying a solicitor.

        There are templates I can buy from Internet to setup declaration of trust, so must be possible to do whole thing myself.

        Comment


          #5
          How do you own the property at present?
          Joint tenants or tenants in common?
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            Joint tenants, thanks

            Comment


              #7
              I think I worked it out now.
              For simple cases (changing from joint tenants to tenants in common), I should
              1. fill in form SEV
              2. fill in declaration of trust document correctly.
              3. Send both doc to land registry
              4. fill in form 17 and send to hmrc

              Think it is all I need to do.



              Comment


                #8
                Is there a mortgage on the property?

                Comment


                  #9
                  yes, there is a mortgage, but I think it doesn't really matter as both name will still on deed (at least this is what I was told when I talked to some solicitors).

                  Comment


                    #10
                    See the link below for further things that you need to consider.

                    https://forums.landlordzone.co.uk/fo...ip-change-sdlt

                    Comment


                      #11
                      Hi,
                      I just looked my copy of title, it says these:

                      No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered by an order of the court.

                      No disposition of the registered estate by the proprietor of the registered estate is to be registered without a written consent signed by the proprietor for the time being of the charge dated xxxx in favor of bank of xxxx referred in the charges register.

                      Frankly I don't really understand what above sentences really mean. At the moment, my wife and I are joint tenants, do above sentences mean we have to consult the bank before creating trust deed?

                      Many thanks

                      Comment


                        #12
                        If you don't know what those terms mean, you probably shouldn't be creating your own deed of trust.

                        You are absolutely right that you can do it yourself.
                        And deeds of trust are simple, and won't cause any issue if things go to plan - because you and your wife are the only people affected by it.

                        The issue is what happens if something doesn't go as expected.
                        You separate or one of you dies.

                        There are other things that might be affected - wills are usually an issue, and some mortgage terms don't allow a change in beneficial ownership (rather than title) and that needs to be checked out.

                        It's simply not something I would take any chances with - property is very high value and has consequently high costs of getting things wrong.
                        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                        Comment


                          #13
                          you are very right, I am leaning to get this done by a professional now

                          Comment


                            #14
                            hi,if this helps anyone (at least people like me who don't know much), I contacted the bank and they said that I don't need to consult them if just to do a tenants in common.

                            Also they don't even have a problem to remove a name from buy to let mortgage, you don't need to pay any charges, but you do need to pay a solicitor that arranged by the bank (for my bank is like 250+vat).

                            So it is not that scary as I thought.

                            Comment


                              #15
                              are you trying to change the ownership of the property or to simply allocate profits in a tax efficient manner ?

                              Comment

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