Insolvency Act Indemnity Insurance

geoffae

The above has come up during our house sale/purchase, our current property is in joint names, the house we wish to purchase will be in my wife's name only, there are reasons for this.

However, whilst my wife has received a mortgage through an advisor/broker our solicitor has instructed us that the mortgage lender would require the above due to the current property being in joint names.

My question is would the advisor/broker be aware of this and if so is he obliged to instruct us that this would be a requirement.

Our solicitor has explained that he is required to protect the lenders funds should there be a claim against me in the future.

Many thanks

Geoff

Thrugelmir

Who are you purchasing the property from and how much "value" is being gifted?

geoffae

Thrugelmir wrote: »

Who are you purchasing the property from and how much "value" is being gifted?

Private seller, if that answers the first part, and I would be gifting 70k as a round figure. House sale agreed price 185k less current mortgage 43k approx. so 50%.

Thrugelmir

geoffae wrote: »

I would be gifting 70k as a round figure.

Hence the lender wishing to protect their interest.