• Deed Of Trust

    By Guest on 01st Feb 2017

    My wife and I are buying some rental properties jointly. I am thinking about setting it up with a Deed of Trust to split the income. What would appear on the tile? Basically I want to know if it would show my wife as sole owner or for example 75% owner and me as 25% owner. If it is just my wife's name it would be difficult to borrow against the property as she earns less than £25K. We need to use the property to buy more properties. Thanks for your help it is appreciated.

  • 1 Answers

    By Guest on 10/02/2017

    It depends who buys the property. Your wife can buy it in her sole name and set up a trust so that she holds it on trust for both of you in which case all that would appear on the title would be her as sole owner and if you wanted, a restriction preventing her from selling without complying the terms of the trust. The land registry don't record beneficial interests and you cannot mortgage a beneficial interest - you have to be a joint legal owner to mortgage.

    You could buy the property together and still hold it on trust for each other in whatever shares you wanted, so for example you could be joint legal owners but hold the equity in 75%/25% shares or whatever suited (so you would be entitled to that proportion of the income). You could then mortgage it together.

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