Declaration of trust vs Land Reg TR1 form

43fig99

Hi All,
I'm buying a house with a relative on the mortgage (to increase the amount the bank would lend), but I will be living there, paying the bills+mortgage, maintenance, etc etc. We agreed that the house would belong to me.

Solicitor advised that the land registry title *must* be in both our names as we are both on the mortgage, but we could use a declaration/deed of trust to register us as 'tenants in common with unequal share'. We've put a 99% / 1% split to satisfy that. Solicitor said he could draw up a separate deed, the basic deed declaring the % split is (£350+VAT), a more detailed deed with agreement for who pays the mortgage/bills/etc would cost extra.

Question: what does the deed do that the TR1 doesn't? I assume if it comes to it, I can prove I've paid the mortgage with no input from outside, via my bank statements.

Question 2: my feeling is that the 'basic deed' is not worth it, it's just confirming what the TR1 form says. So I would need something more detailed.

Question 3: Can I get a deed drawn up by *any* solicitor ie a non-local one, and do it by post? (I'm hoping it will cost around £200-250 instead of £400+; the solicitors have been great with the conveyancing but *much* more expensive than I expected, and the deed document seems very straightforward compared to the overall sale process

Question 4: we're due to complete tomorrow:beer: Is the deed time-limited? Should I have done this before completing, or is it like an add-on to the TR1?


Thanks for your responses

G_M

43fig99 wrote: »

Hi All,
I'm buying a house with a relative on the mortgage (to increase the amount the bank would lend), but I will be living there, paying the bills+mortgage, maintenance, etc etc. We agreed that the house would belong to me.

Solicitor advised that the land registry title *must* be in both our names as we are both on the mortgage, but we could use a declaration/deed of trust to register us as 'tenants in common with unequal share'. We've put a 99% / 1% split to satisfy that.
Seems a good suggestion by solicitor.

Solicitor said he could draw up a separate deed, the basic deed declaring the % split is (£350+VAT), a more detailed deed with agreement for who pays the mortgage/bills/etc would cost extra.
Of course. The more detail, the more time it takes to draw up, so the more it costs.

Question: what does the deed do that the TR1 doesn't? I assume if it comes to it, I can prove I've paid the mortgage with no input from outside, via my bank statements.
TR1 transfers the property into the names of those on the TR1.

Deed specifies who owns what %.

Question 2: my feeling is that the 'basic deed' is not worth it, it's just confirming what the TR1 form says. So I would need something more detailed.
No. Deed specifies the % split (ie 99% Vs 1%)

Question 3: Can I get a deed drawn up by *any* solicitor ie a non-local one, and do it by post?
Yes - as long as you can clearly explain your needs/intentions - sometimes this is easier face to face.
(I'm hoping it will cost around £200-250 instead of £400+; the solicitors have been great with the conveyancing but *much* more expensive than I expected, and the deed document seems very straightforward compared to the overall sale process
legally, if you wish, you could draw it up yourself to save solicitor's fees. Whether you know how to word it, and execute it, without either making it invalid, or so imprecise as to fail to do what you want, is another question.

Question 4: we're due to complete tomorrow:beer: Is the deed time-limited? Should I have done this before completing, or is it like an add-on to the TR1?
Add on. You can do it latr if ou wish.


Thanks for your responses

You're welcome.

Halloumi

Ouch on the price you have been quoted. I think we recently paid around £100 + VAT to a local firm for a declaration referencing financial responsibilities - and we are in a relatively expensive part of the country. We also opted for a different firm to the one who did our conveyancing and had it drawn up a couple of weeks later.

Land_Registry

Whilst the TR1 can be used to specify say the percentage shares as mentioned it is rare to do so as such matters tend to be 'private' and there are often a series of provisions included to clarify things for all concerned.

From a registration perspective we would not include the specific details on the register itself but would reflect how the property was to be held as a result of the Deed being entered into - see joint property ownership.

As posted you could complete the TR1 to refer to holding it in shares as tenants in common and then resolve the details separately/later. The joint ownership aspect is then covered on the register and any deed/declaration of trust is between the two of you and does not change anything as registered on the title.

43fig99

Thanks very much for your replies, that's very helpful.
Yep, I thought it was quite expensive - not under time pressure now the purchase has gone through, so I guess I can afford to shop around.
Cheers

BillTee

I'm buying with my brother 56/44, no mortgage. Quoted £180 for DoT but decided we didn't need as we have agreed how things are to be split and I will either buy him out at market rate, or we will sell and split proceeds as per original %.
As you are effectively owner/occupier, your rel. might want an agreement to ensure that they aren't liable for ongoing costs.
Advise you draft up a Will specifying what happens in event of death of equity partner. You don't want to be kicked out by their beneficiaries.

43fig99

Thanks - good point about the will, I'll get that sorted out at the same time as well.
I don't think there should be an issue with getting kicked out - with a 99/1 split, I will effectively own the whole thing