How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Alex J. Your Own Question
Alex J.
Alex J., Litigator
Category: UK Law
Satisfied Customers: 3497
Experience:  LLB, LPC, DELF
13113900
Type Your UK Law Question Here...
Alex J. is online now
A new question is answered every 9 seconds

I have £250,000 cash in a limited company. After speaking to

This answer was rated:

I have £250,000 cash in a limited company. After speaking to inheritance tax advisor I plan to pass the company shares into a discresionary trust and buy two buy to let properties raising a £125,000 mortgage on each. Are their any lenders which would grant a mortgage to a trust.? I am aged 65 and have a property portfolio .

Hi

Thank you.

There are plenty of lenders who will agree to this but they will almost certainly want a personal guarantee.

Any lenders that were bought out by the government or given financial assistance probably won't help with this. Someone like HSBC private bank or Handlesbanken have appetites for this kind of lending. Any mortgage broker will be able to assist you finding one.

Can I be of any further assistance?

Kind regards

AJ
Alex J. and 4 other UK Law Specialists are ready to help you
Customer: replied 3 years ago.

I have tried h. s .b. c. who I bank with , also Barclays , allied irish and several online brokers but no one will touch it, can you recommend a broker who would be interested

Customer: replied 3 years ago.

Hi you say any broker will be able to help but this morning have tried several with no joy, spoke to handlesbanken and they are not interested. perhaps you can sort me a broker who is ??

Hi

Thank you.

I know Alexander Hall (a firm of brokers) is able to advise on mortgages for trusts.

Can you explain why the mortgage won't be granted to the company? Does it have to go to the trust?

You may be better off buying the first property in cash and then you can use that as a security when applying for a mortgage on the second property? As a suggestion

Thank you

Kind regards

AJ
Customer: replied 3 years ago.

Hi Have been advised to transfer company shares to trust then raise mortgages in company name but as soon as I mention discresionary trust nobody seems to be interested. should I speak to alexander hall or can you get them to contact me , thanks

Hi,

Thank you.

Have you explored the option of buying the properties first and then putting the shares in trust?

Kind regards

AJ
Customer: replied 3 years ago.

Yes I have, and have been told it will complicate things as lenders must be told if properties are transferred to a trust.