Property gift question

Savant

My father has a "buy to let" property that he had earmarked for me even before he transferred it to "buy to let". The rent from property covers the mortgage repayments and other expenses. How can my father transfer the property but still be responsible for the mortgage repayments and rent collection?

Richard_Webster

While he retains the mortgage on it he can't transfer it to you but can only execute a deed of trust saying he holds it on trust for you and that he will keep the mortgage payments.

Presumably although he will collect the rent he will hand it over to you?

If he defaults ont he mortgage lender will repossess and sell and hand any change to your father and you will have to get the money from him.

roger196

Savant wrote: »

My father has a "buy to let" property that he had earmarked for me even before he transferred it to "buy to let". The rent from property covers the mortgage repayments and other expenses. How can my father transfer the property but still be responsible for the mortgage repayments and rent collection?

With the permission of the lender, the property could be put into an interest in possession trust with you as the lifetime tenant( with the usual powers to advance capital in specified circumstances). Expect the lender to require a personal guarantee from father( assuming he has sufficient assets to make the guarantee viable and what happens if he croaks).

Unless there is a substantial IHT liabilty in the future, there are much better ways of transferring wealth. Need to know much more detail. Is he trying to protect against care home fees or what? Whats father's life expectancy? You need to make sure that any legal and accounting fees do not exceed the tax saved.

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Savant

Richard_Webster wrote: »

While he retains the mortgage on it he can't transfer it to you but can only execute a deed of trust saying he holds it on trust for you and that he will keep the mortgage payments.

Presumably although he will collect the rent he will hand it over to you?

If he defaults ont he mortgage lender will repossess and sell and hand any change to your father and you will have to get the money from him.

Thank you. Please can you help with further questions? 1) How can my father 'execute a deed of trust'? 2) What does 'a deed of trust' involve? 3) The mortgage payments for the 'buy to let' property will come from the rent and so will the general maintenance of the property.

Savant

roger196 wrote: »

With the permission of the lender, the property could be put into an interest in possession trust with you as the lifetime tenant( with the usual powers to advance capital in specified circumstances). Expect the lender to require a personal guarantee from father( assuming he has sufficient assets to make the guarantee viable and what happens if he croaks).

Unless there is a substantial IHT liabilty in the future, there are much better ways of transferring wealth. Need to know much more detail. Is he trying to protect against care home fees or what? Whats father's life expectancy? You need to make sure that any legal and accounting fees do not exceed the tax saved.

.

There are no care home concerns, he is not that old. With regards to alternatives ways of transferring the ownership of the property could you possibly list or detail them?