Q&As

A property is held on trust by a corporate trustee, trustee A, for a corporate beneficiary. To appoint an additional corporate trustee (trustee B) to facilitate overreaching, are there any necessary steps besides submission of the relevant Form TR1 and Form AP1 to HM Land Registry. Is there any requirement for consideration for the transfer of legal title into the names of both trustee A and trustee B?

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Published on LexisPSL on 02/01/2018

The following Property Q&A provides comprehensive and up to date legal information covering:

  • A property is held on trust by a corporate trustee, trustee A, for a corporate beneficiary. To appoint an additional corporate trustee (trustee B) to facilitate overreaching, are there any necessary steps besides submission of the relevant Form TR1 and Form AP1 to HM Land Registry. Is there any requirement for consideration for the transfer of legal title into the names of both trustee A and trustee B?

In this case it appears as if the decision has been taken to appoint an additional trustee to ensure that overreaching of the beneficiary’s interest occurs on a sale of the land to a third party. This will occur when the proceeds of sale are paid to two trustees. It is not clear from the question whether or not this is in anticipation of a sale to a third party. In such a case, a buyer of land from trustees will not be affected by any of the trusts on which the land is held if the purchase price is paid to all the trustees (of whom there must be at least two) or to a trust corporation (note that a trust corporation is not the same as a corporate trustee, but has the special meaning assigned to it by section 205(1)(xxviii) of the Law of Property Act 1925 (LPA 1925)).Where there is only one trustee, the buyer must ensure that another trustee is appointed or the buyer will neither get a good receipt for the purchas

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