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Remortgaging - but a Deed problem.
Dido2012
Posts: 2 Newbie
This is my first post so apologies if this is not the best Forum.
As part of a divorce settlement over 15 years ago, I was forced to accept a Trust Deed upon my (formerly joint) property. This deed states that upon the eventual sale of the home, a third of the proceeds would be put into a Trust for each of my sons to be held until they reached 25 years old.
They are both older than 25 now but the Trust is still listed on the land registry and is causing a problem as I seek to re-mortgage.
Ironically, this remortgage is to buy a property for my sons!
Can this be solved easily and cheaply? Can the Trust be dissolved as they are both now past the age listed?
I wondered if this might be a possibility if both were to say write a letter of agreement? I have read of a Deed of Release. Can I execute this for myself?
Help please. Thanks in advance
As part of a divorce settlement over 15 years ago, I was forced to accept a Trust Deed upon my (formerly joint) property. This deed states that upon the eventual sale of the home, a third of the proceeds would be put into a Trust for each of my sons to be held until they reached 25 years old.
They are both older than 25 now but the Trust is still listed on the land registry and is causing a problem as I seek to re-mortgage.
Ironically, this remortgage is to buy a property for my sons!
Can this be solved easily and cheaply? Can the Trust be dissolved as they are both now past the age listed?
I wondered if this might be a possibility if both were to say write a letter of agreement? I have read of a Deed of Release. Can I execute this for myself?
Help please. Thanks in advance
0
Comments
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What did the trust deed say would happen once the children reached 25? Did the trust deed terminate at this point without any distribution? Or did the right to one third of the proceeds become absolute? What would happen if the sale took place when one son was 26 and the other 23?
There is the bizarre situation that if the property is never sold, eg given away, the sons would appear to get nothing. What is meant by proceeds...is it before or after repaying any mortgage.
As you can see the position is complex. You need to find a
solicitor who specialises in trusts. Take with you the deed for him to read. You need to discuss with your sons what is their attitude to the deed.0 -
Sell the house to yourself and discharge the deed?Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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DVardysShadow wrote: »Sell the house to yourself and discharge the deed?
DVardy sShadow: That sounds interesting.
Could it be possible within the terms of exacting a remortgage do you know?
Roger196: 'proceeds' should have read 'profit. My sons know that when I pop off, all that I have will belong to them so they're not bothered about the deed. At its inception they were young and it was seen as a way to preserve their 'right' by their father; hence its imposition.
I'm not and have never intended to sell - as I said - it's to raise some money.
Thanks for thoughts.
All others welcome.
Thank you0
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