RX1 - do I need it?

roadweary

Sorry for any overlap with previous posts, but I'm trying to understand this asap today.

• I am re-mortgaging a property as buy to let. 
• It has always been in my sole name. 
• I am adding my wife to the mortgage and transferring 99% of the equity to her.

The lender's legal company has said:

The RX1 is the application to register the restriction and the declaration of trust with the Land Registry. We are unable to submit an RX1 without the declaration of trust. If you wish for us to register the restriction, then we will charge £195 +VAT.

 As mentioned below, you do not need to do this, and this can be done by yourselves with your acting solicitor after completion.

and

If you do not need or require a declaration of trust, or do not wish to have one we do not need to do this. However, we note the requirements on the TR1 and you can register a trust after completion yourself, if you wish to.

There is no mention of a form 17.  I want to ensure that the split of 99:1 is achieved and that income can be declared using that split for tax purposes.

In the scheme of things, I don't mind paying the £195 + vat if it achieves what is required.

Thanks,

R

sheramber

the lender's company are concerned with the land registry requirements for ownership.

HMRC's requirements are not their concern.

roadweary

sheramber said:

the lender's company are concerned with the land registry requirements for ownership.

HMRC's requirements are not their concern.

Yes, and they are very clear that they are representing the lender not me.

I think that so long as they state on the TR1 that the property is to be held as tenants in common with a ratio of 99:1 in my wife's favour that I can then use the TR1 (and possibly a form 17) to register the split from the HMRC perspective.

I've asked them to confirm that the TR1 will state as above and if so, to confirm the proposed completion date and whatever docs they would show me prior to doing that.  But it's been a very painful process!