transfer of ownership to spouse; mortgage implications

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    #1

    transfer of ownership to spouse; mortgage implications

    In order to minimise the income tax liability on our rental income, I am planning to transfer ownership of our property to my wife (probably to a 99-to-1 % split). I understand from previous threads that this will require a Declaration of Trust defining the Beneficial Ownership and a Form 17 to HMRC but what is not clear to me is the implications for the joint-mortgage with our mortgage lender (Clydesdale Bank). Do they need to know that the ownership proportions are changing? Why? If so, what costs are likely to be involved?

    I'd be grateful for any advice.

    Barry
    Tags: mortgage, ownership, transfer
    #2
    i think you need to consult with mortgage lender first to get their consent . You have already given the mortgage lender a charge over the property title to secure a mortgage loan.

    Comment

      #3
      Post #2 is correct but, as for post #1, no- the mortgagee is not concerned with the beneficial interests: only with who owns the legal estate.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

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