Hello and thanks for using Just Answer.
My name is ***** ***** am happy to assist you with your enquiry.
The way forward is as follows-
The property is purchased by your Father, so he is shown as the legal owner on the Land Registry Deeds. On the same day your Father completes the purchase, a Trust Deed is signed by both of you.
The Trust Deed will stipulate that although the property is owned by your Father, he is holding it upon Trust for you. It will also state that your Father can not sell or re-mortgage the property without your consent.
As added protection for you, a "Restriction" can and should be registered at the Land Registrymeaning that the Land Registry would require your consent before dealing with any subsequent sale or re-mortgage application affecting the property. This saves your Father from being able to go behind your back and sell or re-mortgage.
The Trust Deed and Restriction will then just sit there until such time as your Father is happy to transfer the legal ownership of the property to you.
If for whatever reason he does not decide to transfer the legal ownership, then the fact that he has signed the Trust Deed is evidence that the property ultimately belongs to you, and you would have the right to go to Court and request that the ownership be transferred to you, if the worst came to the worst.
It would be advisable for you to instruct your own Solicitor concerning the Trust Deed and the registration of the Trust Deed, and the Solicitor acting for your Father in the purchase will be able to advise him as regards ***** ***** Deed. If your Solicitor were to prepare the Trust Deed, you are looking at £250-£400 plus VAT in legal fees, provided everything goes smoothly.
I hope this helps you, and sets out the legal position.
Thank you very much for the informative and helpful response. I have three additional questions relating to the purchasing arrangement that you proposed in your last message, which I have listed below:
(1) Would it be possible to undertake the purchase in the manner you proposed (where my father purchases the property and is shown as the legal owner – whilst the trust stipulates that it is being held in trust for me) but to also include the additional clause: that by the time I reach a certain age (e.g. 35 - in 6 years time) the property’s ownership would automatically convert to myself?
(2) In your previous message you wrote that a 'Restriction' could be registered at the Land Registry that would entail requiring my consent before my father would be able to deal with any subsequent sale or re-mortgage application...what would happen, however, if a situation arose where my father fell into huge debt and did not have the money to pay it back? Would any of his creditors be able to make a claim on the property – even without my consent and approval – in order to get money they are owed?
(3) If the property is purchased in the way that you mentioned (where my father purchases the property and is shown as the legal owner – whilst the trust stipulates that it is being held in trust for me) would that automatically make that asset (the property) ‘protected’ from any potential civil litigation against me personally? (For example, if a girl decided to press charges against me for sexual assault and was seeking financial compensation, would the property be ‘financially immune’ – given that my father would be the legal owner – even if it was being held in trust for me?)
Thank you very much for your assistance. I shall most definitely give you another excellent service rating.
Thank you once again for your excellent concise and informative response.
My father and I discussed the issue, and he agreed that he would be willing to insert a provision in the Trust Deed stipulating that after 4 years he would take all the necessary steps to transfer the legal ownership of the property to me.
Two additional questions that I have which I would be most grateful if you could help clarify for me are:
1) Are there be any Inheritance Tax advantages (or disadvantages) in having my father purchase the property under his name but held in trust for me? (i.e. Would it provide any protection against inheritance tax?)
2) Would I have to pay Stamp Duty once the property's ownership became transferred to me (after the 4 year period)?
Thank you ever so much for your assistance.
I hope I have answered your original questions, and I would be happy to assist further if you were to post your latest request as a new question.
I would be happy to do that. In order to request you (rather than another property solicitor) to answer the question, shall I just begin the sentence with 'ForCustomer so that it goes directly to you?