Declaration of Trust

Trebormint

Hi, I am not sure what that has to do with my question concerning the split of the net income?

AnotherJoe

Are you new on the Internet ?

Sometimes, the best answer to a question isn't to answer the one directly asked.
If you said "why does it hurt when I stick red hit pins in my eyes" the best answer is "don't do that" rather than "because there are nerves that run from the eye to the brain "

In your case it's clear that you and your ex can't get on. So, rather than debate what the answer is, given the paucity of your info which doesn't allow a clear answer, why don't you just get out of the financial relationship?

Thrugelmir

Are you provided with a copy of the annual accounts pertaining to the letting activity.

Tom99

Trebormint wrote: »

Sorry - to start with the mortgage is interest only if this helps
I paid for all of the refurb costs and the interest against them was deemed to be £325 per month, so that is what she pays, and she keeps the rest as she took out the mortgage but seems to be keep anything else over and above those repayments but I don't know how much this is.
I guess I am still looking at the wording and think I should still get 50% of the net which I haven't to date, am I correct according to the DOT wording.?

[FONT=Verdana, sans-serif]This is obviously a complicated deed of trust and you have only quotes part of it which is why you are not getting a straight forward reply.[/FONT]

[FONT=Verdana, sans-serif]In essence you contributed some money towards the property but are not a legal owner. The DOT seems to say you will share the proceeds of sale and the net rents 50/50.[/FONT]

[FONT=Verdana, sans-serif]But the full deed probably has a number of definitions for example 'Improvement Monies' and 'Account'. Also details about what mortgage there is, who pays it, is the mortgage payment and 'Outgoing', what are the other outgoings and who pays them etc.[/FONT]

Trebormint

The DOT is very simple, and apart from details f actual amounts this is all that is included so I only included what was relevant.

Full DOT below;

The Legal Owner declares that she holds the Property on a trust of land.
2. The Legal Owner declares she holds the Property and its proceeds of sale and
repaying the Improvement Monies to the Account) and the net rents and profits until sale UPON TRUST for herself and the Contributor as tenants in common in equal shares
3. The Legal Owner and the Contributor declare that all outgoings in respect of the Property and the interest accruing on the Account attributable to the Improvement Monies shall be paid by them in equal shares
4. It is agreed that a restriction in Form B will be registered at the Land Registry
5. It is agreed between the Legal Owner and the Contributor that this Declaration
shall be binding upon their respective Personal Representatives
6. The Legal Owner hereby covenants with the Contributor that she will not create
any further mortgages or otherwise without the consent of the Contributor

G_M

Sigh!

chanz4 wrote: »

Whats declared to HMRC?

Its probably the nett amount after improvements/expenses/fees and taxes.

You get 50% of the net rent so what deductions are there from the gross £1,350pm?

you post in not very clear about what the outgoings and repayments are and who pays for them.

Are you provided with a copy of the annual accounts pertaining to the letting activity.

:beer:

Tom99

Trebormint wrote: »

The DOT is very simple, and apart from details f actual amounts this is all that is included so I only included what was relevant.
Full DOT below;
The Legal Owner declares that she holds the Property on a trust of land.
2. The Legal Owner declares she holds the Property and its proceeds of sale [STRIKE]and[/STRIKE](after
repaying the Improvement Monies to the Account) and the net rents and profits until sale UPON TRUST for herself and the Contributor as tenants in common in equal shares
3. The Legal Owner and the Contributor declare that all outgoings in respect of the Property and the interest accruing on the Account attributable to the Improvement Monies shall be paid by them in equal shares
4. It is agreed that a restriction in Form B will be registered at the Land Registry
5. It is agreed between the Legal Owner and the Contributor that this Declaration
shall be binding upon their respective Personal Representatives
6. The Legal Owner hereby covenants with the Contributor that she will not create
any further mortgages or otherwise without the consent of the Contributor

Should No 2 read after (not and) repaying Improvement Monies?
The above text is still missing the definitions of 'Improvement Monies' and 'Account'
Also how interest is 'accrued to the Account' is not explained, nor how 'interest accruing to the Account attributable to the Improvement Monies' is calculated.
Is there a mortgage? If so who pays it? What is the 'interest' referred to, is it real/notional or what?

Trebormint

This is the DOT so whilst I understand your comments they are not defined within the DOT so from a legal perspective my questions still stand

To help, the improvement monies are in a defined account which forms personal content of the DOT which I am clearly not going to publish, but that I paid. This included all building costs products labour etc. The interest paid was based on what was being charged at the time, although I am not clear if as there is no date specified, if the balance on this account needs to be repaid at whatever amount it is when the house is sold. I have paid off a lot of this balance over time and am concerned I may loose out.
Again interest against the actual mortgage account was being paid at the rate set at the time. Not sure what that was
As stated there is a mortgage which is interest only, and is paid by the legal owner, again not sure what the rate was at the time.

Tom99

[FONT=Verdana, sans-serif]

Trebormint wrote: »

This is the DOT so whilst I understand your comments they are not defined within the DOT so from a legal perspective my questions still stand.[/FONT][FONT=Verdana, sans-serif]
To help, the improvement monies are in a defined account which forms personal content of the DOT which I am clearly not going to publish, but that I paid. This included all building costs products labour etc. The interest paidwas based on what was being charged at the time, although I am not clear if as there is no date specified, if the balance on this account needs to be repaid at whatever amount it is when the house is sold. I have paid off a lot of this balance over time and am concerned I may loose out.
Again interest against the actual mortgage account was being paid at the rate set at the time. Not sure what that was
As stated there is a mortgage which is interest only, and is paid by the legal owner, again not sure what the rate was at the time.[/FONT]

[FONT=Verdana, sans-serif]You paid money into an account? Savings account? Was this money in this account then used to pay the improvement costs?[/FONT]
[FONT=Verdana, sans-serif]You say the interest paid was based on what was being charged, so who is paying this interest and who are they paying it to and who is charging interest and who are the charging it to?[/FONT]
[FONT=Verdana, sans-serif]Is the interest paid by the legal owner on the mortgage an 'outgoing'? And therefore one of the deductions from the gross rent before you get 50%.[/FONT]

00ec25

Trebormint wrote: »

This is the DOT so whilst I understand your comments they are not defined within the DOT so from a legal perspective my questions still stand

if you want legal advice go back to the lawyer who drew up the DoT and ask them to define the key terms

meantime, as Tom99 shows, your question cannot be answered because it depends on the precise calculation of who owes whom, how much, and at what rate based upon the missing definitions