• I Am Filling Out A TR1 For Transfer Of A FMH To My Ex-wife. Her Legal Representatives Are Demanding This Following Additional Comment In Box 11 Of The Form 'Raffaella Smith Covenants With Joseph Richard Smith To Observe And Perform The Covenants Set Out I

    By Guest on 11th Apr 2016

    I am filling out a TR1 for transfer of a FMH to my ex-wife. Her legal representatives are demanding this following additional comment in Box 11 of the form 'Raffaella Smith covenants with Joseph Richard Smith to observe and perform the covenants set out in the Charges Register so far as they are still subsisting and capable of taking effect and to keep Joseph Richard Smith indemnified against any breach or non-observance thereof Joseph Richard Smith hereby declares that he is neither insolvent nor will become insolvent as a consequence of this Transfer'. my ex-wife does not earn enough money for the mortgage to be transferred as well, so I have to be kept on the mortgage. Does this additional comment NEED to be in?

  • 1 Answers

    By Guest on 11/04/2016

    The first part, where she covenants to observe the covenants in the charges register and to indemnify you is for your benefit. The second part about declaring that you are solvent is probably superfluous given that no new mortgage is being taken out. The idea is that if you transfer your assets for less than market value because you believe you are about to become insolvent and want to put them out of the reach of your creditors the Official Receiver can, if you do become insolvent and there is sufficient evidence that you were deliberately avoiding creditors , overturn any transfer of your assets so that they can be sold to satisfy your creditors. The declaration of solvency by you at the time of the transfer can be used as evidence to defend an action by the Official Receiver to overturn it. It wouldn't help your ex wife if she isn't paying any money for the share and there isn't a lender to protect (your lender's security wouldn't be affected as it pre-dates the transfer) so there is noone to protect. Plus if there is a Consent Order in place then the Official Receiver can't use his powers to overturn an order of the court. Having said that, if you are solvent and will remain so then making the declaration does you no harm

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