I have been asked to help a young man who is the sole owner (at Land Registry) of a flat, which is rented out. There is a mortgage on the property, also in his sole name. However the deposit of about £60,000 was paid by his mother and there is a simple hand written trust deed signed by him and his mother stating that the property is belongs to her, with him as nominee.
The purchase was arranged in this way because the mother could not obtain any loan and she lives outside UK for much of the time and she has no other income.
The son is a higher rate tax payer. The HMRC have asked for accounts for the last fewyears and I reckon that this should be decalred in the mother's name as beneficial owner.
Any advice on this matter or any pitfalls I should look out for ? Thank you