Transfer at Undervalue / Insolvency Indemnity Insurance

kingstreet

No clues in Skipton criteria, so suggest speaking to broker and/or solicitor;-

Skipton defines this as an applicant who purchases from a close blood relative for a discount, we can lend up to 100% of the discounted purchase price. LTV is restricted to individual product maximum and is calculated on the loan as a percentage of the open market value. A close blood relative is defined as either:

• Parent

• Child

• Grandparent

• Sibling

• Uncle / Aunt

The Society will not consider applications for simultaneous home improvements or capital raising.

The_Mango_Tree

I have a similar situation to the above. My father is selling me his house. I have actually been living in it alone for seven years and paying his mortgage. I am buying it for 102,000, using 5000 of my own money against a valuation of 130,000 - the lender has agreed to the mortgage of 97,000. I am self-employed and had to supply 3 years SA302s together with the usual 3 months of bank statements and Noddle report. All going well until suddenly...my Solicitor today has contacted me to say that I need Indemnity Insurance for Undervalue against the possibility of my father being declared insolvent. He contacted an Insurance agent and they have asked for 3 years audited accounts (which I don't have). Why would they want this? I thought the Indemnity Insurance protects me and the lender against the possibility that the seller becomes insolvent and that it should be the seller i.e. my father in this case who proves solvency?