Lending to Trusts
Posted on 13 August 2018 by Geoffrey S
My wife and I are in our early 70's. We have set up a family trust with ourselves and our 2 sons as trustees. We would like to arrange a mortgage for the trust, with our sons as guarantors, to purchase 2 buy-to-let 1 bedroom properties in London each producing £715 a month. At present the properties are owned jointly by my wife and myself and have a combined value of at least £350,000.00 with no mortgages or charges. The mortgage application would be for around £150,000.00 We would use most of the capital from the sale to pay off almost all of our existing repayment mortgage thereby saving ourselves £1750 a month. The trust would make the mortgage repayments from the rental income (currently £1430.00 a month gross with any residue used for maintainence and for the benefit of the trust). Would you be able to help with this kind of arrangement?
There are a few specialist lenders who will consider lending to trusts and because I can not offer you any advice on this website, I have asked one of our independent mortgage advisers to contact you by e-mail with a view to arranging a meeting.
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