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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10232
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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I bought my ex husband out of the property in September 2011

Resolved Question:

I bought my ex husband out of the property in September 2011 by remorgaging. Now the mortgage deal is coming to an end and I want to change lenders. Their solicitor is now asking for a Deed of Gift Indemnity Insurance policy. This wasn't taken out at the time of buying my ex out. The declaration they want me to sign for them to get me this insurance asks me to state that he wasn't and isn't self employed. However he was self employed at the time of transfer and is now also a director of his company. We separated in 2008 and were divorced in june 2009 but it took until September 2011 for the finances to be sorted out. Can I get insurance to cover him as self employed. This is causing considerable stress between me and my new husband (who isn't on the mortgage application). I haven't spoken to the new banks solicitor as I am scared they will withdraw the mortgage offer before I've had chance to sort this out.
Submitted: 3 years ago.
Category: Law
Expert:  Aston Lawyer replied 3 years ago.

 

Hi there,

 

Thanks for your enquiry.

 

To enable me to answer you fully, could you please confirm that when the property was transferred to you under the divorce, was there a Consent Order drawn up by your Solicitor and whether you paid any consideration to your ex husband and if so, how much was this in comparison to the amount of equity in the property?

 

I look forward to hearing from you.

 

AL

Customer: replied 3 years ago.


Hi


 


Yes there was a consent order and the split was 70:30of the equity in my favour. My ex husband was paid exactly 30% down to the last penny.

Expert:  Aston Lawyer replied 3 years ago.

 

Hi again,

 

Thanks for your reply- which is great news you will be pleased to hear.

 

All Mortgage Lenders Solicitors have to comply with the following-

 

"If you are aware that the title to the property is subject to a deed of gift or a transaction at an apparent undervalue completed within five years of the proposed mortgage then you must be satisfied that we will acquire our interest in good faith and will be protected under the provisions of the Insolvency (No 2) Act 1994 against our security being set aside. If you are unable to give an unqualified certificate of title, you must arrange indemnity insurance."

 

Basically, as a Solicitor therefore, if you feel that a party has given property away to deliberately avoid creditors, then indemnity insurance is required.

As you obtained a Consent Order, (an agreement that was ordered by the Court), in the unlikely event of your ex husband going bankrupt within the 5 years from making the Transfer to you, the Trustee in Bankruptcy would have no argument whatsoever that the Transfer was deliberately made by your ex husband to avoid creditors, because it was the Court that made the Order rather than your ex husband just transferring the property "at an undervalue".

I must say that I have never come across a Solicitor who insists on indemnity insurance being taken out on a matrimonial Transfer where a Consent Order was made due to the above reasoning.

 

I therefore suggest that you forward a copy of the Consent Order to the Solicitors and they should have no further query concerning this issue!

 

I hope this answers your question, and if so, I would be grateful if you could leave positive feedback.

 

Kind Regards

AL

Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10232
Experience: Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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