Removing a person from Title deeds

[david100]

I have a joint mortgage with my farther so also the title deeds are in joint names.
I am currently looking at a re-mortgage in just my name and at the same time removing my farther from the deeds. This is all done with no transfer of equity with full agreement from my farther.

The solicitor has said that as there is no transfer value that there is a problem and that my farther needs to sign a Declaration of Insolvency in the presence of a solicitor or Commissioner of Oaths and that I need to pay the mortgage company Indemnity Insurance which will cost approx �150.00.

My question is why a Declaration of Insolvency needs to be produce when my farther is not insolvent? And who can act as a Commissioner of Oaths?

[Oneeyedtic]

A Commissioner for Oaths, in English law, is a person appointed by the Lord Chancellor with power to administer oaths or take affidavits. All practising solicitors have these powers. The rest of what you say is obscure to me. If a mortgage lender will accept you alone as responsible for the mortgage then normally the lender will insist upon doing all of the work in removing your father's name from the mortgage and Registry (both yours and theirs and including the Land Registry and Revenue) under the heading of "Transfer of Equity" (this heading applies whether money changes hands between your father and you or not). A charge of about �250 is usual plus the Land Registry fee.

[ursula62]

Unless you're doing this for tax avoidance reasons, your father can transfer the property to your sole name by making a transfer for "natural love and affection". This usually means a minimum fee at the Land Registry. If your solicitor has mentioned a declaration of insolvency there must be more to the story than you've told us.

If you truly believe your solicitor has given you wrong advice you can ask to speak to another solicitor.

[Didwot]

If someonene gives something away, and then goes bankrupt, the gift may be a "Transaction at an Undervalue" and can be set aside by the Court so that the asset is recovered fro the benefit of that persons creditors. If you want to look it up it is theInsolvency Act at section 359 etc. Therefore the morgage company wants to protect its postion in case your father were to become bankrupt. It is not an unusual or unreasonable requirement.

[david100]

Ok I think I understand.

There is on hidden Tax reasons just simple it was a joint purchase 10yrs ago from a Housing association where my farther was the only named tenant with me as named only a son. So the purchase had to be in joint names.
My farther has never made any payments for mortgage or fee over the 10 yrs and moved out some years ago.

So my farther can make a gift of the equity for nil value as a �Transaction under value� under �Natural love and affection� but must make a statement that he is solvent witnessed by a solicitor. Then the lender will want to protect there investment with indemnity insurance?

I never realized that this would be so difficult and expensive to do!!  

[erimus1]

Been a while since I did anything with convayancing i'm afraid, but basically it is a safeguard to ensure that your father has no debts that should be honoured first. If he gift deeds this property to you, the a court can overreach this and get his share back. Also, if he dies within (i think 7 years??) you then have to pay duty on it.
Good luck and just trust your solicitor - they usually know what they are talking about.