Complicated BTL Insurance question

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KTF said:

How has he managed to come up with the money in 2 weeks when it was originally 3 months?

He already had the £40k. It's the balance he's waiting for when he sells another house that he owns. [That's a 1-bedroom property on the main road with no parking, mine is a 3 bed cul-de-sac in a much nicer area.)

KTF said:

What work is he doing to 'your' property prior to his tenants moving in?

Chimney breast in kitchen being taken out. This is going to make the kitchen bigger as well as one of the bedrooms.

KTF said:

Has any of this been run past a solicitor/conveyancer or is he just expecting to BACS you the rest to avoid the stamp duty, etc?

It's well below stamp duty threshold. The solicitor who is dealing with his other sale is also dealing with this property. He's not mentioned anything. The sale price on the contract will be the actual sale price so I'm not sure what is being avoided?

[Justayellowbadge]

He's knocking down the chimney breast whilst you still own it?

Are you mental?

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Just to add - thanks for all the concern about the "risk" I'm taking - there is no risk (apart from the Tenants going tonto). I'm convinced he would have sorted things out even if the place disappeared in a ball of rubble and flame.

However it was my OH who "suggested" I get insurance which is the basis of my original question i.e. whose name the insurance should be in.

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Justayellowbadge said:

He's knocking down the chimney breast whilst you still own it?

Are you mental?

Yes I am.

I'm selling it to a family friend. Our families have known each other for 60 years. He does property development for a living. I trust him.

My next threads in H,G&D will be titled

"Do chimney breasts act as supporting walls in terraced houses"
and
"There's a suspicious crack in the external wall. However my mate's insurance policy is refusing to pay out because it's not HIS house."

[Charlie1986]

no risk?

Tennant's who are paying someone else the rent
Friends son who wants to do building work in your house.
but you are sure theres no risk

Did you speak to a solicitor? as I don't know one who would say there was no risk and many would strongly advise not to go ahead.

Has he signed the contracts or just transfer the money over? As if you are going ahead at least get him to exchange contracts on the house so you have the 40k no matter what.

[anonymous-user]

Countdown said:

Just to add - thanks for all the concern about the "risk" I'm taking - there is no risk (apart from the Tenants going tonto). I'm convinced he would have sorted things out even if the place disappeared in a ball of rubble and flame.

However it was my OH who "suggested" I get insurance which is the basis of my original question i.e. whose name the insurance should be in.

In answer to the question

if you have "exchanged" he insurers it.

As this looks informal, you insure it and hope for the best.

[Red Leader]

He can get the property insured in his name but its not his property. Please make sure that he tells the insurer this as it is a big factor and may complicate matters if there is a claim.

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Red Leader said:

He can get the property insured in his name but its not his property. Please make sure that he tells the insurer this as it is a big factor and may complicate matters if there is a claim.

Thanks - will do.

[elanfan]

Countdown said:

Thanks - will do.

Just like I cannot insure your life as I have no insurabie interest in it he cannot insure something that doesn't belong to him.. You MAY be able to find an insurer who will change the name of the policyholder once legal matters are completed providing you explain to them what is happening first.

Still think you're mad! But hope it turns out ok for you!

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elanfan said:

Just like I cannot insure your life as I have no insurabie interest in it he cannot insure something that doesn't belong to him.. You MAY be able to find an insurer who will change the name of the policyholder once legal matters are completed providing you explain to them what is happening first.

It was the "insurable interest" uncertainty which was the reason for the original post. He's actually going to go to an old-fashioned high street broker and make sure they understand what is being required before he takes out the policy. This is where comparison sites aren't always the best port of call

elanfan said:

Still think you're mad! But hope it turns out ok for you!

Cheers

[elanfan]

A long long time ago when I was in personal insurances in Coomercial Union we used to put an endorsement on buildings insurance noting the interest of mortgage providers. Quite what legal implication this had when a came to a settlement I don't know but if I were you I'd insist on your mate noting your interest on the policy.

Another thought could it be issued in joint names?

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Just to update - I've had all the cash for the house. We just need to transfer it into his name.

What's the best way for doing this? There is no mortgage, he's not planning on carrying out any surveys, it was a cash purcahse from his point of view. As far as I can see it's just a name change.

The solicitor I normally use charges about £500. Online quotes suggest it could be doable for £250. What are the downsides of using online conveyancing (bearing in mind the house is a known quantity, my Sol did various searches when I purchased it 2 years ago, its got all the safety certificates...)

[TA14]

I always understood that as a rule of thumb on line conveyancers are fine for straight forward stuff when you're not in a hurry. Yours sounds less than straight forward and you sound to be in a bit of a hurry. Good luck.

[mikees]

This has got cluster fk written all over it.

This WILL go badly

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TA14 said:

I always understood that as a rule of thumb on line conveyancers are fine for straight forward stuff when you're not in a hurry. Yours sounds less than straight forward and you sound to be in a bit of a hurry. Good luck.

Nope - no rush whatsoever. The buyer is on holiday for the next 4-6 weeks. His tenants are paying him rent. His solicitor paid me the balance of the purchase price (so he is aware of what the sale price was). The only thing left to do (and AFAICS there's no urgency on either of our parts to get this bit done) is to transfer the names over.

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mikees said:

This has got cluster fk written all over it.

This WILL go badly

How?

[anonymous-user]

Countdown said:

Nope - no rush whatsoever. The buyer is on holiday for the next 4-6 weeks. His tenants are paying him rent. His solicitor paid me the balance of the purchase price (so he is aware of what the sale price was). The only thing left to do (and AFAICS there's no urgency on either of our parts to get this bit done) is to transfer the names over.

In which case get his solicitor to fill in the transfer form and handle any stamp duty disclosure. Pop into said solicitor and sign. Job done.

Shouldn't cost more than a few quid, if anything.

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desolate said:

In which case get his solicitor to fill in the transfer form and handle any stamp duty disclosure. Pop into said solicitor and sign. Job done.

Shouldn't cost more than a few quid, if anything.

Result!! Never heard of property transfer forms before - cheers