My client A purchased a residential property for his brother B as his PPR , who could not obtain a mortgage. Brother B paid the deposit, legal fee and SDLT and all regular outgoing together with monthly mortgage interest. They both signed a bare trust deed to effect this arrangement. Now bother B has died and his estate is well below £325k. Can his wife be added a beneficial owner in the existing deed and update restriction on Land Register.
Presumably, A and B were trustees holding the legal title as to 100% for B ie B holds 100% of the beneficial interest in the property.
The legal title passed automatically on B’s death to A (under a joint tenancy).
Presumably, B by will left his 100% beneficial interest to his wife. In which case, all that is necessary is for A to execute a new declaration of trust as to 100% in favour of B’s wife.
If A and B were both on the mortgage the mortgagee needs to be notified of B’s death. If only A was on the mortgage no notification is in practice needed (although might be strictly necessary).
Malcolm Finney
Hi Malcolm, thank you. A is only legal owner and mortgage on his name, and there was no will. Net value of the property is only £150k and there is no other significant assets, it is an excepted estate. Can they simply update the restriction on Land Registry with proof of death and wife of brother B replaces him as new beneficial owner avoiding creation of new bare trust?
On B’s death A will hold the legal title for B’s estate. Presumably, B’s wife inherits B’s interest.
If legal title is to remain with A the PRs of B’s estate can assent B’s beneficial interest in the property to B’s wife. Strictly speaking, such assent does not need to be in writing but it is probably preferable to do so. A will then continue as a bare trustee but holding the beneficial interest for B’s wife (not B) but not under the original bare trust.
Malcolm Finney
[quote=“hadleys, post:3, topic:15395”]
Hi Malcolm,
Many thanks.