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6 month rule and re-mortgage
borichkent
Posts: 7 Forumite
My grandma died in 2000 and left. I am looking to raise a buy to let re-mortgage on the property but the property is still unregistered. We got the following legal advice which went to my mum:
****
Both myself and my team leader have considered the Will of the late Mrs xx in greater detail and do not believe that a full life interest trust exists in clause 5 of the Will. Clause 5 creates a trust which allows you to reside in the property known as “xxx”, it also allows you to sell the property and purchase another one to reside in. Once you no longer reside in the property, under the terms contained within the clause the trust ends and the property automatically vests in Richard and Sarah.
What this means is that when you moved out of the property many years ago, the trust should have ended at that point. I recall you advising me that you and your husband built a property 20 years ago which you live in. Therefore if you were not living in “xxx” when your mother died, the trust in effect was never created. This means that the property already vests in your son and daughter and can be transferred to them. Therefore it is not necessary for you to complete any legal documents in order for the trust to end, as it has either ended naturally by you no longer residing in the property or was never created.
****
Therefore the property appears to have passed to my sister and I in 2000. However do I have to wait 6 months to be the registered owner on Land Registry or does the legal advice and Will which shows the property passed to my sister and I be acceptable.
It seems that most lenders require 6 months before I can re-mortgage?
****
Both myself and my team leader have considered the Will of the late Mrs xx in greater detail and do not believe that a full life interest trust exists in clause 5 of the Will. Clause 5 creates a trust which allows you to reside in the property known as “xxx”, it also allows you to sell the property and purchase another one to reside in. Once you no longer reside in the property, under the terms contained within the clause the trust ends and the property automatically vests in Richard and Sarah.
What this means is that when you moved out of the property many years ago, the trust should have ended at that point. I recall you advising me that you and your husband built a property 20 years ago which you live in. Therefore if you were not living in “xxx” when your mother died, the trust in effect was never created. This means that the property already vests in your son and daughter and can be transferred to them. Therefore it is not necessary for you to complete any legal documents in order for the trust to end, as it has either ended naturally by you no longer residing in the property or was never created.
****
Therefore the property appears to have passed to my sister and I in 2000. However do I have to wait 6 months to be the registered owner on Land Registry or does the legal advice and Will which shows the property passed to my sister and I be acceptable.
It seems that most lenders require 6 months before I can re-mortgage?
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