Land registry - putting a property in to trust

Burts84

Hi there, not sure if I’m in the correct category. I am looking for advice on what forms are needed and what can be done if I wish to put my properties in to a trust. 

I have a leashed flat with no mortgage - and I believe a TR1 form will transfer this over and I can enter a restriction so that no one can put charges against it? Am I correct 
I also have a freehold property with a mortgage charge - I have absolute title but am restricted because the charge. So my question is what do I do with that property? Can I use an RX1 to register a restriction claiming the equitable title belongs to the trust and therefore every stops a bank foreclosing without consent?? 

Any advice would be great, especially how to put a restriction on the equity in the property that has a mortgage charge 

Thanks 

Land_Registry

Burts84 said:

Hi there, not sure if I’m in the correct category. I am looking for advice on what forms are needed and what can be done if I wish to put my properties in to a trust. 

I have a leashed flat with no mortgage - and I believe a TR1 form will transfer this over and I can enter a restriction so that no one can put charges against it? Am I correct 
I also have a freehold property with a mortgage charge - I have absolute title but am restricted because the charge. So my question is what do I do with that property? Can I use an RX1 to register a restriction claiming the equitable title belongs to the trust and therefore every stops a bank foreclosing without consent?? 

Any advice would be great, especially how to put a restriction on the equity in the property that has a mortgage charge 

Thanks 

It’s unclear what you are trying to achieve here and why as the scenarios and actions don’t match up. 

A TR1 transfers the legal ownership but changing the legal ownership doesn’t usually prevent someone from putting a charge against it. 

And I’m unsure what a restriction claiming the equitable title would be and whether it could stop a registered charge owner from repossessing if registered after the loan was secured. 

I’d strongly recommend seeking legal advice on what it is you are trying to achieve and what options you have 

Burts84

A TR1 form will indeed transfers legal title to the trustees in the name of a trust but also has a box to enter a restriction. So I’m asking what restriction can be entered so that a third party can not put a charge against the property claiming an interest in the property without consent of the trustees. 

I understand that a court ordered charging order may be different, but they wouldn’t obtain that because the property is held on trust for beneficiaries.(when it’s me personally they are looking to charge)

The RX1 for the freehold  is quite simple what I’m trying to achieve which is put the equitable title in to the trust. The bank do not own the equitable title. 

Banks also can not foreclose without our permissions which is why they put power of attorney clauses in all our mortgage t&cs so they can achieve this. 

If 
I know there is a way to achieve what I saying and no solicitor will advise because they only teach the system they’ve been told and nearly all solicitor know very little about trust law 

 

theartfullodger

Burts84 said:

Hi...

I have a leashed flat with ..

Hope t'other end of leash is secure, would want flat wandering off....😉

Herbalus

So somebody is trying to put a charge on a property you own, presumably because you owe them some money?

So you’re trying to take your properties out of your ownership and into a trust to put them out of reach of creditors?

I can see why there might not be many people leaping to help you.

theoretica

Burts84 said:

I understand that a court ordered charging order may be different, but they wouldn’t obtain that because the property is held on trust for beneficiaries.(when it’s me personally they are looking to charge)

 

It won't only be trust law that is relevant, especially if you are seeking to avoid a particular charge.  For instance bankruptcy can reverse gifts made before you go bankrupt.

For the mortgaged property, won't you need the mortgage lender's agreement to giving away the equity?  So they would need to agree to whatever protections you attempt to put in place.

Land_Registry

Burts84 said:

A TR1 form will indeed transfers legal title to the trustees in the name of a trust but also has a box to enter a restriction. So I’m asking what restriction can be entered so that a third party can not put a charge against the property claiming an interest in the property without consent of the trustees. 

I understand that a court ordered charging order may be different, but they wouldn’t obtain that because the property is held on trust for beneficiaries.(when it’s me personally they are looking to charge)

The RX1 for the freehold  is quite simple what I’m trying to achieve which is put the equitable title in to the trust. The bank do not own the equitable title. 

Banks also can not foreclose without our permissions which is why they put power of attorney clauses in all our mortgage t&cs so they can achieve this. 

If 
I know there is a way to achieve what I saying and no solicitor will advise because they only teach the system they’ve been told and nearly all solicitor know very little about trust law 

 

The TR1 box to enter a restriction relates a trust declaration
https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1/guidance-completing-form-tr1-for-the-transfer-of-registered-property#how-to-complete-panels-in-form-tr1
Our guidance on private trusts and section 1.3 in particular may assist 
https://www.gov.uk/government/publications/private-trusts-of-land