What is a Deed of Assignment?

January 10, 2022 12:32 pm

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After you have  bought a property, to be used as a home or as a Buy to Let, you can use a Deed of Assignment. It’s a lot like a Deed of Trust with one great exception, it can only be set up after the property has been purchased. The Deed of Trust is made before. It’s one of the many legal minefields that can catch you out. Luckily there are the Ascot solicitors https://www.parachutelaw.co.uk/ to help you out with it all.

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A Deed of Assignment is where you assign any profits from the property that you receive to a certain person, group or charity. For example, if the property is sold then whatever you make after the mortgage is cleared, if there is one, is then further divided up. So, for example, if you make a profit of £100,000 from the sale and you want ten per cent to go to a charity of your choice this means that £10k will be withdrawn and given over to them.

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If you are drawing a rental income then this can also be the case. Using the example above again, if you take £500 a month in rent, and there are no mortgage payments to make, then £50 will go to charity every month. It works out to be a suitable tax efficient way of being able to make the payment and not have to pay too much to HMRC.