Administration of trusts—trustee investment in residential property
Administration of trusts—trustee investment in residential property

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Administration of trusts—trustee investment in residential property
  • Trustee powers
  • Purchase for occupation by a beneficiary
  • Purchase for investment
  • Legal considerations when letting a property
  • Energy Performance Certificates
  • Furniture and furnishings
  • Gas installations
  • Marketing a property—description
  • Selling property
  • more

Before purchasing a residential property trustees should instruct a surveyor to carry out a valuation and building survey. The surveyor should be a member of the Royal Institution of Chartered Surveyors. The trustees can either obtain:

  1. a Homebuyer Survey and Valuation (HSV) or

  2. a Building Survey

In an HSV the surveyor reports on:

  1. the general condition of the property

  2. any significant defects in accessible areas that may affect its value

  3. urgent and significant matters that need assessing before entering into exchange of contracts, including recommendations for any further specialist inspections

  4. results of any testing of walls for dampness

  5. comments on damage to timbers including woodworm and rot

  6. comments on the existence and condition of damp-proofing, insulation and drainage

  7. the recommended reinstatement cost for insurance purposes

  8. the value of the property on the open market

The HSV focuses on urgent and significant matters. If the property under consideration was built before 1900 or requires renovation or the HSV raises any concerns, a Building Survey should be carried out, preferably by a surveyor familiar with the geographical area.

Trustee powers

When purchasing trust property the trustees should initially consider whether the purchase is:

  1. permitted under the statutory powers

  2. authorised by the trust instrument

For general information on trustee powers, see Practice Notes: Trustees—introduction to trustee powers and Trustees—statutory powers of trustees.

Purchase for