My wife and I purchased our buy-to-let (BTL) properties as joint married owners (each having a half share), and wish to take advantage of being able to shift income to 90:10 in favour of her lower earnings tax liability using Form 17. All our properties are in Scotland and have BTL mortgages in joint names. Initial enquiries with lenders gained the response that they would permit this change, advising this would change the basis on which the initial application was assessed. However, for a declaration of trust to be drawn up does there need to be any notification to Land Registry or the lenders?

If you look at www.property118.com/avoid-refinancing-landlord-incorporation/82791/ the writer claims that unless there are specific clauses/conditions in the mortgage contract, there is no requirement to seek permission from or inform a mortgage lender of a transfer of beneficial interests. However not everyone agrees. Look at www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9520, where you can see that the Land Registry does not need to be informed of a transfer of beneficial ownership through a declaration of trust.