Ask a Law Question, Get an Answer ASAP!
Thanks for your question.
I don't think you have any issues here. The real problem would have been if the valuation came in less than your offer.
There is a genuine reason for your agreed price, the property needs renovation.
1. If the property is being sold at an undervalue a declaration of solvency may be required in certain circumstances. However, if this is an arms length transaction with a very valid reason for the agreed price it may not be necessary. If the seller went bankrupt soon after the sale a trustee in bankruptcy would have to establish that insolvency was due to the sale of the property at an undervalue in order for the sale to be set aside. Discuss this further with your solicitor to establish if you both think that this is necessary.
2. This point you can discuss with the broker or lender direct. Although I would imagine that you will be held to the £128k figure as it is this amount which you are buying for.
Any other questions / queries in respect of the above please feel free to contact me.
Please remember to accept /positive rate my reply.
Mo, forgot to mention that the Law Society Conveyancing Handbook suggests insurance is not needed in to protect a lender's interest however some Lenders ask for the indemnity insurance to be implemented in these circumstances and there is a standard policy covers an interest acquired by a mortgagee. I wouldn't say the the conveyancing handbook is definitive on the issue.
If your lender requires it, get it. It should not cost that much
3.12.3 tells you exactly what you need. Without meeting this requirement your lender will not lend. Lender's requirements vary and the lender can set its own requirements which you will need to comply with.
It is down to your solicitor to determine whether or not he feels this constitutes a bargain price based on the lender's criteria. The criteria gave 3 circumstances, were those examples or was the list definitive. Your solicitor will need to interpret and act accordingly.
I hope my answer was helpful.
I can assist further if necessary. But can I please ask you to positive rate my reply. It is how the site works to ensure I get credit for helping you.
I can still assist you after rating. Thanks.