Does anyone know how to report a Sharia mortgage in Form IHT400? The legal ownership of the deceased’s property was registered in the name of the lender at the Land Registry, and there is no mention of the deceased or any Declaration of Trust or anything to do with the beneficial interest. Any pointers gratefully received!
Hi Jane
I suspect you have one of the early Shariah mortgages c2003 ish. The initial practice was to register the property in the name of the bank, but that changed after the obvious flaw was realised. That said, the bank should be able to provide you with the equivalent of a ‘redemption statement’. (I cannot recollect the correct term, but the principle remains the same.) Essentially I suggest that the amount owed to the bank at the date of death should be recorded as the ‘debt’ with the value of the property being owned by the underlying client similar to a conventional finance arrangement.
I hope this helps.
I hope you’re doing well. It sounds like a confusing situation to navigate, but I may have a solution. Have you considered reaching out to a specialist mortgage broker who is knowledgeable in these types of loans?