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Transfer of equity
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sheagre7
Posts: 25 Forumite
Hi,
I’m currently applying for transfer of equity and the mortgage company have asked for the settlement figure to the outgoing party. Is that just to see if I can afford to buy them out for other reasons?
Many thanks in advance
I’m currently applying for transfer of equity and the mortgage company have asked for the settlement figure to the outgoing party. Is that just to see if I can afford to buy them out for other reasons?
Many thanks in advance
0
Comments
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It may be to check that the outgoing party is receiving a fair value based on their equity.
If the transfer were to happen undervalue and the outgoing party were to be made bankrupt, the transaction can be unwound.
To prevent this, the lender may insist that the outgoing party receives a settlement figure based on the true market value, or could insist on an insolvency indemnity insurance policy to protect all parties.0
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