• Legalities Surrounding Transfer Of Equity

    By Guest on 16th Feb 2017

    my ex-husband and I have two properties together. When we divorced he kept one property and I the other. He has now sold the property he kept and I received no money and he kept the equity. I want to take him off of my deeds and mortgage, this will also help him as he will not then be classed as having two properties and have to pay stamp duty on his new purchase.
    do I have to have an indemnity policy for my mortgage company?

  • 1 Answers

    By Guest on 16/02/2017

    Hi,

    Assuming no money changes hands you will probably be asked to pay for an insurance policy for "transfer at undervalue". Basically if a person disposes of an asset for no money or for significantly less than its market value and then becomes insolvent, so that it looks like he might have disposed of the asset to put it beyond the reach of his creditors, the trustee in bankruptcy can overturn the transaction which means that your new lender would lose its security (assuming you take a new mortgage to pay off the old one, doesn't matter if you keep the existing mortgage). So the insurance is to protect against this possibility. In your case you have paid a fair price for his share in that you have given him your equity in the other property, so if you can prove that you might be able to avoid paying for the policy, depending on the lawyer dealing with the transfer and mortgage

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