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  • FIRST POST
    • pootleflump
    • By pootleflump 4th Feb 18, 8:53 PM
    • 69Posts
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    pootleflump
    Tenants in common & declaration of trust
    • #1
    • 4th Feb 18, 8:53 PM
    Tenants in common & declaration of trust 4th Feb 18 at 8:53 PM
    My husband and I are buying a house but we will have to let it for a few years before we can live in it.

    We are buying as TIC, with me owning 99%, him 1%. This is so that I get the rental income, as I'm a basic rate taxpayer and my husband is higher.

    If anything were to happen that forced us to sell, we would want 50/50 of everything, including initial deposits.

    In this case, is a declaration of trust required? Or would that only be necessary if we wanted unequal shares upon sale?
Page 1
    • Thrugelmir
    • By Thrugelmir 4th Feb 18, 8:55 PM
    • 58,462 Posts
    • 51,837 Thanks
    Thrugelmir
    • #2
    • 4th Feb 18, 8:55 PM
    • #2
    • 4th Feb 18, 8:55 PM
    In this case, is a declaration of trust required? Or would that only be necessary if we wanted unequal shares upon sale?
    Originally posted by pootleflump
    As you are married then a financial settlement would need to be agreed that covers all your assets.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • pootleflump
    • By pootleflump 4th Feb 18, 9:21 PM
    • 69 Posts
    • 6 Thanks
    pootleflump
    • #3
    • 4th Feb 18, 9:21 PM
    • #3
    • 4th Feb 18, 9:21 PM
    As you are married then a financial settlement would need to be agreed that covers all your assets.
    Originally posted by Thrugelmir

    So are you saying a declaration of trust is required?
    • 00ec25
    • By 00ec25 4th Feb 18, 10:04 PM
    • 6,380 Posts
    • 5,890 Thanks
    00ec25
    • #4
    • 4th Feb 18, 10:04 PM
    • #4
    • 4th Feb 18, 10:04 PM
    you are married

    you must own as TIC, not JT, but even so the unequal shares will not be accepted by HMRC for the purposes of income tax unless you submit a Form 17 supported by a DoT

    as you will be TIC, you can then alter the split when ready to sell. CGT is based on beneficial ownership, not legal ownership so you will need a new/final DoT to confirm the split on sale

    a divorce will override anything you have in place as that will start from 50/50, the rest is acrimony and fighting
    • Cakeguts
    • By Cakeguts 4th Feb 18, 10:12 PM
    • 4,363 Posts
    • 6,241 Thanks
    Cakeguts
    • #5
    • 4th Feb 18, 10:12 PM
    • #5
    • 4th Feb 18, 10:12 PM
    How would your legal ownership affect getting a buy to let mortgage if you need a mortgage to buy?
    • pootleflump
    • By pootleflump 4th Feb 18, 10:24 PM
    • 69 Posts
    • 6 Thanks
    pootleflump
    • #6
    • 4th Feb 18, 10:24 PM
    • #6
    • 4th Feb 18, 10:24 PM
    you are married

    you must own as TIC, not JT, but even so the unequal shares will not be accepted by HMRC for the purposes of income tax unless you submit a Form 17 supported by a DoT
    Originally posted by 00ec25
    Thank you - that answers my question. I was aware of the need to submit a Form 17 but didnít know it had to be supported by a DoT.
    • pootleflump
    • By pootleflump 4th Feb 18, 10:26 PM
    • 69 Posts
    • 6 Thanks
    pootleflump
    • #7
    • 4th Feb 18, 10:26 PM
    • #7
    • 4th Feb 18, 10:26 PM
    How would your legal ownership affect getting a buy to let mortgage if you need a mortgage to buy?
    Originally posted by Cakeguts
    Sorry, not quite sure what youíre asking, but itís not a BTL mortgage - itís residential with CTL.
    • 00ec25
    • By 00ec25 4th Feb 18, 10:38 PM
    • 6,380 Posts
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    00ec25
    • #8
    • 4th Feb 18, 10:38 PM
    • #8
    • 4th Feb 18, 10:38 PM
    Thank you - that answers my question. I was aware of the need to submit a Form 17 but didn!!!8217;t know it had to be supported by a DoT.
    Originally posted by pootleflump
    LOL. How did you miss:

    "If you live with a spouse or civil partner and have income from property you jointly own, you!!!8217;ll normally be taxed on an even split of the income between you.

    Use this form if you want to change the split of income to your actual share of ownership.

    You!!!8217;ll also need to provide evidence that your beneficial interests in the property are unequal, for example a declaration or deed."


    https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17
    • Cakeguts
    • By Cakeguts 5th Feb 18, 12:09 AM
    • 4,363 Posts
    • 6,241 Thanks
    Cakeguts
    • #9
    • 5th Feb 18, 12:09 AM
    • #9
    • 5th Feb 18, 12:09 AM
    Sorry, not quite sure what youíre asking, but itís not a BTL mortgage - itís residential with CTL.
    Originally posted by pootleflump
    But you aren't going to live in it you are going to let it. Residential mortgages are for people who are going to live in the property straight after they buy it.

    Buy to let properties are for people who want to buy a house to let. You are buying a house to let. You aren't going to live in it. You say you may live in it in the future but you aren't buying it to live in straight away so you need a Buy to let mortgage not a residential one.

    Have you told your mortgage company that you are not going to be living in the house and are going to let it?
    • pootleflump
    • By pootleflump 5th Feb 18, 6:29 AM
    • 69 Posts
    • 6 Thanks
    pootleflump
    Because I havenít looked the form up yet - I know about it because I was told by a helpful person on this forum.
    • pootleflump
    • By pootleflump 5th Feb 18, 6:33 AM
    • 69 Posts
    • 6 Thanks
    pootleflump
    But you aren't going to live in it you are going to let it. Residential mortgages are for people who are going to live in the property straight after they buy it.
    Originally posted by Cakeguts
    My question wasnít about mortgages.

    My mortgage is already in place - a residential mortgage with Day One CTL. Itís a concession available to us as a forces family. Weíre buying it as our family home but circumstances donít currently allow us to live in it, so not BTL.
    • ChrisBint
    • By ChrisBint 5th Feb 18, 10:00 AM
    • 45 Posts
    • 4 Thanks
    ChrisBint
    But you aren't going to live in it you are going to let it. Residential mortgages are for people who are going to live in the property straight after they buy it.

    Buy to let properties are for people who want to buy a house to let. You are buying a house to let. You aren't going to live in it. You say you may live in it in the future but you aren't buying it to live in straight away so you need a Buy to let mortgage not a residential one.

    Have you told your mortgage company that you are not going to be living in the house and are going to let it?
    Originally posted by Cakeguts
    My partner had a standard mortgage with agreement to let from Lender for many years with no issues.
    • 00ec25
    • By 00ec25 5th Feb 18, 7:24 PM
    • 6,380 Posts
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    00ec25
    Because I havenít looked the form up yet - I know about it because I was told by a helpful person on this forum.
    Originally posted by pootleflump
    didums, you have now been significantly helped again, this time to the full info you need.
    • pootleflump
    • By pootleflump 5th Feb 18, 8:08 PM
    • 69 Posts
    • 6 Thanks
    pootleflump
    didums, you have now been significantly helped again, this time to the full info you need.
    Originally posted by 00ec25
    Thankfully most people on here offer help without the need to belittle others.
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