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Aston Lawyer
Aston Lawyer, Solicitor
Category: UK Law
Satisfied Customers: 10180
Experience:  LLB (HONS) Over 23 years legal experience specialising in Property law and Wills/Estates
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My wife is in 30k debt and we have a property free from

Customer Question

Hi
My wife is in 30k debt and we have a property free from debts worth 140k if I was to re morgadge so she could clear her debts and keep the rest of the money could the Soliciters at the time transfer all her share of equity in the house to my name and so if she did get in to debt again in the future the creditors would not have any right over the family house ?
Submitted: 1 year ago.
Category: UK Law
Expert:  Aston Lawyer replied 1 year ago.
Hello and thanks for using JustAnswer.
My name is ***** ***** am happy to assist you with your enquiry.
It certainly is possible to transfer the Deeds into your sole name. This can all be completed on the same day as you complete your re-mortgage. If you are proposing to take out the new Mortgage with your existing Mortgage Lender, you will also need to apply for a "Transfer of Equity"- there will be a separate form for you to complet ein this regard.
The only thing you have to be aware of is that under Insolvency laws, the Trustee in Bankruptcy can apply to reverse any transaction made by the bankrupt within 5 years of the bankruptcy if it was don to avoid creditors. Therefore, in the unfortunate event of your wife being made bankrupt, the Trustee in bankruptcy could try and claim a 50% share of the equity in your property.
Likewise, the Solicitor instructed to deal with the Transfer and re-mortgage, will need to take out an insurance policy, to protect the new Mortgage Lender, in the unfortunate event of the above scenario happening. This policy is called "a deed of gift indemnity policy" and would be a one off payment of approximately £200 depending on the value of your property. You would of course be expected to pay this sum.
I hope this assists you and sets out the legal position.
Kind Regards
Al