Deed of Trust or Loan Agreement
Deed of Trust
- Confirms an interest in the property
- Share any gain
- Terms of the sale
- Property obligations
- Stamp Duty Land Tax may be payable if consideration
- Capital Gains Tax may be payable
Loan Agreement
- Declare loan amount
- State interest rate
- Terms for repayment
- Debt secured as second charge
Do you need to inform the mortgage lender?
Why do a loan agreement instead of a Deed of Trust?
- First Time Buyer Relief - you will lose the ability to get the benefit of first time buyer relief if you are buying a property.
- Additional Home SDLT - on purchases over £40,000 there is an additional 3% stamp duty land tax to pay on top of the normal SDLT for the purchase.
Many loans, even simple loans between family are protected by the Consumer Credit Act which has additional protections for the borrower, and may leave the lender vulnerable.
Andrew Boast FMAAT is a qualified accountant, conveyancing specialist and author with over 25 years of experience in the UK property sector. Since beginning his career in 2000 within established SRA and CLC-regulated conveyancing solicitor firms, Andrew has overseen the legal journeys of more than 75,000 clients.
He is the self-published author of the first-time buyer guide: How to Buy a House Without Killing Anyone, and a frequent contributor to mainstream UK media on legislative updates, property law, first-time buyer guides, conveyancing best practices, and stamp duty changes. Andrew specialises in resolving complex title issues, property conflict disputes, and property tax options, streamlining the enquiry process to reduce transaction times and maintaining a client-friendly focus.
Amanda Ambler is a highly accomplished conveyancing specialist with over 15 years of dedicated experience across residential property law, legal compliance, and practice management. Having held senior roles, including Head of Legal Practice and Head of Conveyancing at established UK law firms, Amanda possesses a profound, hands-on understanding of the technical intricacies of the property market.
As the designated Legal Content Reviewer for SAM Conveyancing, Amanda ensures that every guide, legal update, and resource published meets the absolute highest standards of accuracy, regulatory compliance, and factual integrity. Her rigorous review process guarantees that complex property legislation and industry processes are communicated clearly, transparently, and safely for home buyers and sellers alike.
