Declaration of Trust

[dementiawidow]

When I moved in with my now husband we bought out his ex-wife from the house. The house was remortgaged. I put in money towards the deposit and have contributed to the mortgage ever since. In fact, for the last five years or so I have solely paid the mortgage. However, the house wasn't actually "bought" - it just stayed in his name with a new sole mortgage in his name (although earning well and with assets, I wasn't mortgageable because I'm a freelance performing artist, not the banking world's favourite kind of customer). All this has been fine, as we are married, have wills and so on. However, I have recently realised that if I die before him, the house being in his name means that I don't have a share in the house to leave to my children. It all belongs to him in spite of the fact that I have made an equal contribution to it. Obviously I want to fix this. Can I get a Declaration of Trust drawn up now to reflect this situation, even though it is 10 years after we bought the house? My DH is happy to agree to it. How do I go about this?

[mumblechum0]

I'd suggest that you talk to a conveyancer about whether a transfer into joint names would be better than a declaration of trust.

The lender will probably consent now that the mortgage has been paid regularly, so it should be reasonably straightforward.

I suggest that you hold the property as tenants in common, and change your will to include Life Interest in Possession Trusts.

[dementiawidow]

I assumed the lender would want to remortgage, putting us back at step one. Also I don't want to destabilise the current mortgage agreement, as it is at a ridiculously favourable rate. But I will at least check on this option, thanks.

[Richardhun]

A solicitor will draw up a deed of trust for you.

Might be easier to get married though.

[dementiawidow]

I am married. We've been married for 12 years.

[mumblechum0]

i think your issue isn't that, if her husband dies first, you won't get anything (I'm presuming that your husband's will gives you his entire estate with no strings attached), but that if you're the first to die, because you don't own a property, your children won't receive anything.

Some lenders may insist on remortgaging upon a transfer into joint names, but many will simply agree to the transfer subject to being satisfied that the mortgage isn't suddenly going to fall into arrears.

It would be a bit cheaper to do a deed of trust than a transfer, though but personally I think it would be tidier to do a transfer.

[dementiawidow]

Thank you Mumblechum. That is exactly what I am getting at. I guess the way to go about it is to firstly see if we can do a transfer, then if not possible without remortgaging, then do a deed of trust. So just to be clear, is it possible to do a deed of trust in these circumstances? Thanks

[mumblechum0]

Yes, it's straightforward to do a deed of trust. Most firms would charge £300 to £400 plus VAT and disbursements.