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Thomas
Thomas, Solicitor
Category: Family Law
Satisfied Customers: 7602
Experience:  UK solicitor
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My husband and I moved into his mothers property as she was

Resolved Question:

My husband and I moved into his mother's property as she was struggling with costs. We have lived here for 3 years and invested some money into improvements as well as paying her £550 per month towards bills. We are in a position where we need to extend the property which will mean an investment of approximately £50k on our part. We already have a deed of trust which entitles us to 10% of the equity if the property is sold. Can this be increased or do we need to go down the route of a transfer of equity?
Submitted: 3 years ago.
Category: Family Law
Expert:  Thomas replied 3 years ago.
Hi,

Thanks for your question.

There is nothing preventing you from executing a further declaration of trust which increases the level of equity interest that you have in the property. You just have to ensure that she takes legal advice on it before she executes it. If considering proceeding this way you need to ensure that the declaration is registered on the legal title in the form of a restriction.

It's quite a substantial sum of money though the ultimate protection would be for you to be transferred on to the registered title for the property (ie. so all three of you are on it) and for a declaration of trust to be in place as well stating your respective interests in the property. This would be the ideal way forward.

If there is a mortgage on the property you would need to have a mortgage offer issued in your respective names in order to transfer the equity.

If there is a mortgage on the property and you decide to just do a declaration of trust then you would also need to get the lender's consent to the alterations.

If there is no mortgage on the property then the transfer of equity can be easily carried out.

Kind regards

Tom
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