TR1 - Legal effect

Trusts Discussion
1

A client wants to transfer his property into joint names of him and his wife. The property is showing a charge, which apparently has been paid but the mortgage company have not yet removed the same or more importantly the restriction.

Would l be correct in assuming that a transfer can still be signed and dated, (aiming for pre 6 April), and would still have legal and beneficial effect. The only issue is that the land registry will not yet process the transfer given the restriction, and there is too little time to have the restriction removed. The alternative is a deed of assignment, but technically that may involve trust registration etc… and is not the preferable solution.

2

The transfer will have legal and beneficial effect, but best to remove the restriction and register it soon after.

If the mortgage has not been released it will need to be subject to that, so make sure it is below the SDLT level if there is any doubt about whether it has been paid off.

Simon Northcott

3

Apologies. The legal title only passes on registration but it is still effective in equity.

Simon Northcott

4

Thank you… that’s what I meant to say in my original post, beneficial effect, and legal effect once land registry have processed.