• Protecting My Lender Against The Vendors Previous Owner

    By Guest on 27th May 2015

    I'm purchasing a property, and have been told at the last possible moment that I require insolvency indemnity to protect my lender because the owner gave the house as a gift to the vendor (elderly mother to son). The draft policy states I have no protection, it's only for the vendor. So if the previous owner files for bankruptcy, the house as a below value gift can be claimed back. My lender gets an insurance payout, and I'm in the street?? This seems crazy, am I misunderstanding something or being taken for a ride. I thought this type of insurance was to protect my use of a deposit that was obtained as a gift from a friend/relative?

  • 1 Answers

    By Guest on 28/05/2015

    Your solicitor needs to explain the policy to you as your understanding is incorrect.

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