Can I go on the deeds but not on the mortgage?

kingstreet

More from previous threads on this;-

https://forums.moneysavingexpert.com/discussion/5118119

https://forums.moneysavingexpert.com/discussion/5091458

legseleven192000

It is a bit of a nightmare. We were sold by hsbc that we would be on the mortgage but not on the deeds. This is where we are stuck. Hsbc say that's fine to do. Land say not. We would basically be paying for a house we don't own as the relative will be the only person on deeds and not on our mortgage. How did your solicitor friend get round land registry when he did it OR was 1 party on both mortgage and deeds which is different to above way hsbc have sold it to us.

kingstreet

legseleven192000 wrote: »

It is a bit of a nightmare. We were sold by hsbc that we would be on the mortgage but not on the deeds. This is where we are stuck. Hsbc say that's fine to do. Land say not. We would basically be paying for a house we don't own as the relative will be the only person on deeds and not on our mortgage. How did your solicitor friend get round land registry when he did it OR was 1 party on both mortgage and deeds which is different to above way hsbc have sold it to us.

That is exactly what is going to happen and what you have applied for, yes.

The borrower(s) and owner(s) were different.

legseleven192000

How do you convince land registry it exists. Lol.

kingstreet

I've just send a PM to 'glennbtn' from the second of the threads I've just linked to to see if he can tell you more having done what you are trying to do.

His last activity was May this year, so this may be a forlorn hope...

Thrugelmir

From the second home stamp duty angle. Post on the House Buying board as there's an extremely knowlegable individual on the board. Who might qualify this aspect. What you are proposing seems too obvious not to have been blocked in the legislation.

Tom99

[FONT=Verdana, sans-serif]If you can't convince the Land Registry to play ball could you be legal owners but then have a Deed of Trust which says you have 0% beneficial interest and your relative 100% beneficial interest. That way I think you avoid the extra 3% stamp duty?

[/FONT] [FONT=Verdana, sans-serif]Extract from HMRC notes:[/FONT]
"[FONT=Times New Roman, Times New Roman, serif]Where an individual (who is not a spouse or civil partner of another purchaser) is one of the purchasers of a dwelling but they will have absolutely no beneficial interest in the property, they will not be treated as a joint purchaser of that dwelling. This would have to be evidenced in writing. Any future entitlement to capital proceeds from the sale of the property, to income or to occupy the property would mean that they do have a beneficial interest." [/FONT]

legseleven192000

Interesting everyone, thank you very much for this. Cant do anything now until after Christmas. If I get anywhere I will document it on here for any other poor sap trying to do this!

Tom99

Has the purchase completed?
Who signed the contract and who signed the transfer? Were you involved with either of those documents?

getmore4less

legseleven192000 wrote: »

It is a bit of a nightmare. We were sold by hsbc that we would be on the mortgage but not on the deeds. This is where we are stuck. Hsbc say that's fine to do. Land say not. We would basically be paying for a house we don't own as the relative will be the only person on deeds and not on our mortgage. How did your solicitor friend get round land registry when he did it OR was 1 party on both mortgage and deeds which is different to above way hsbc have sold it to us.

If you want a beneficial interest in the property then SDLT should be payable.

being on the deeds as a legal owner is not the yes/no for SDLT beneficial ownership is the key measure.


You may need to structure this as a loan.