Question:
I understand it is possible to get a buy to let mortgage in my own name (to benefit from the better mortgage deals available to individuals), but then transfer the ‘beneficial’ ownership of the property to a limited property company owned by myself, by means of a deed of trust? Can you explain how a deed of trust works in this instance and how to set one up? I'm assuming the property will stay in my name at the land registry. Also, I don’t think I have to inform my mortgage lender about this (is this correct?). For accounting purposes, I assume that all the rent and expenses, etc. will just show through the company’s accounts as though the company were the legal owner of the asset
Arthur Weller replies:
You can obtain from a solicitor or someone else a pro forma deed of trust that says ‘that until now A was the legal and beneficial owner of the asset, but now he is transferring the beneficial ownership (or a percentage of it) to B’. Re your mortgage lender: this is not a tax question and you really need to speak to someone with legal knowledge, but it seems to me that if you don't first inform your mortgage lender about the transfer of the beneficial ownership then it could be considered to be mortgage fraud. On the assumption that you do successfully transfer the beneficial ownership to the company and you remain purely as a bare trustee, then you are correct - all the rent and expenses will show through the company's accounts.
I understand it is possible to get a buy to let mortgage in my own name (to benefit from the better mortgage deals available to individuals), but then transfer the ‘beneficial’ ownership of the property to a limited property
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