Transfer beneficial interest

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  • jpkeates
    You may need your mortgage lender's permission and should check that before you do anything.
    The trust will reduce the value of the security of the lender's loan by 50% and they might have an issue with that.

    The lender's charge on the property may need to be varied.

    Your wife will need to advise HMRC of her new source of income and agree how it will be reported to them (usually by self assessment).

    CGT when sold will be based on 50% of the gain from the date of the trust, you can't backdate it.

    And I share Gordon999's view of the interest allowance.

    Leave a comment:

  • Gordon999
    I believe if wife is not named on the mortgage loan , she cannot include mortgage interest in her 50% share of the maintenance expenses

    Leave a comment:

  • drdes
    started a topic Transfer beneficial interest

    Transfer beneficial interest

    I own a property in my sole name.

    I want to transfer 50% of the beneficial interest to my wife. Property has £100k mortgage. Not looking to make any changes to title deeds.

    Is my understanding correct as below:

    - I sign a declaration of trust giving her 50% beneficial interest.
    - no need to inform mortgage lender since deeds not changed
    -no need to inform HMRC except when I do tax return next year.
    - annual income from property will be split 50:50
    -CGT upon sale will be 50:50?
    - no stamp duty will be payable due to mortgage size

    Is this correct?

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