Deed of Trust - Advice needed please

gazzabib

Evening all,

I am getting mixed responses when im searching my situation online.

In short i own a home which i rent out on a consent to let basis (i am armed forces), this is my only home which i plan to live in when i retire.

I have a £85k mortgage and i purchased it as a first time house with stamp duty relief. Me and my wife own no other home, but she owned a home many years ago which was sold. (she lost money on it)

Is the below doable? I am with Nationwide and yet to enquire, just wanted advice before i approach them.

I am the sole legal owner and the sole mortgagor.
I want to transfer 100% beneficial ownership of the property to my wife.
I will retain all mortgage liability in my name.
This transfer must be structured so that there is no SDLT liability, meaning no mortgage liability is transferred.
The Deed should clearly state that my wife is entitled to 100% of the rental income.
We need the Deed drafted in a format suitable for submission to HMRC with Form 17.

poseidon1

You say you want to retain 100% of the mortgage obligation, whilst your wife retain 100% benefit of the rent.

How then do you propose she receive the tax deduction for mortgage interest payable in that scenario?

Suggest you think this through carefully, unless you are happy for your wife to be taxed on the gross rentals without tax relief on the mortgage interest you continue to pay.

gazzabib

ah, sorry, forgot to mention. My wife is not earning so she would be below the tax threshold