- charliefaddoulParticipant@charliefaddoulJoin Date: 2022Post Count: 0
I am having trouble understanding the technicalities around Purchasing a property using a trust.
I just wanted to confirm, as the trust is owned by the company, when I apply for a loan, do I take the loan out in the name of the company that holds the trust or the trust itself?
Any help understanding this is much appreciated.
CharliefinancebrokerParticipant@financebrokerJoin Date: 2022Post Count: 0
I was here around 10 years years ago, however have just created a new account. Yours being the first post I’ve read.
Based on your post, I would need to make some assumptions… but here goes…
I have a feeling you are referring to the trustee e.g. the trust has a company acting as trustee. The trustee is not the owner of the trust but more of an administrator, managing the trust for the unit holders or beneficiaries. Having a company as trustee is very common when banks are lending to trusts.
Generally. A loan application would be submitted with the company as the applicant (acting in its capacity as trustee). There are then usually directors guarantees and sometimes guarantees from beneficiaries.
Hope that’s helps :-)