Declaration of Solvency

 
Trustpilot
 
 
Trustpilot
 

Why do I need a declaration of solvency?

A declaration of solvency is required by a mortgage lender and or a buyer when the owner is gifting their share in a property for zero consideration. The gift means the owner no longer owns the property/asset which has a value.
 
The owner cannot gift property if they have debts or liabilities that they can't afford to pay. This is to stop people from giving away their assets in order to avoid paying what they owe. If you give away your assets and then become bankrupt, the transaction could be reversed by the trustees in bankruptcy, returning it to your ownership, in order to sell it to balance your debt.
 
To make a declaration of solvency, you will need to provide evidence to show that you have assets with a total value higher than your total debt. You make the declaration to the solicitor, who swears the declaration. It is a criminal offence to make a false declaration.
 
The declaration is an assurance to the Lender and/or Buyer that the transaction will not be reversed.
 
Gifted transactions require a declaration to be made in front of a solicitor. We charge a fixed fee of £151 INC VAT per person and have availability at short notice. Terms apply.
 

Statutory Declaration Online Instruction
Book a meeting today with our solicitor.

First contact is within 48 hours.

 
Transaction reference:
(If you are already a Parachute Law client you must use your quote reference to sync your details to your account)
Transaction Reference:
(If you are already a Parachute Law client you must use your client reference to sync your details to this form, it'll save you filling your details in again)
Text me my security code
This may take up to 30 seconds
Security Code
Sync my data
Who is making the declaration?
Title
First name
Middle name/s
Last name
Mobile number
Home Postcode
Lookup
Flat No:
First line
Second line
Town/City
County
Property details your deed relates to
Postcode of property
Lookup
Flat No:
First line
Second line
Town
County

What statutory declaration are you making?

Have you been made bankrupt?

Are you aware of any bankruptcy proceedings?

What is the name of the solicitor firm we need to send the declaration to?
Solicitor's Full Name
Full Address
email
Attach Documents
You can attach a scan .PDF or a .JPEG. There is a free to use App called TurboScan for Android or IOS phones which converts a photo to .PDF on your mobile.

All documents provided through this online form will need to be accessible by you during your meeting. Please ensure you have all the relevant documentation printed and ready prior to your meeting taking place. If you don't have access to the documents in the meeting then you'll have to re-book your meeting for an additional fee.

    1
    Proof of Photo ID
Attach a copy of your current valid passport or driving licence. The photo ID that you provide needs to be presented to the solicitor during your meeting. If the photo ID presented to the solicitor in the meeting does not match the ID uploaded an admin fee of £50 will be chargeable to organise a new meeting to validate your photo ID.
    2
    Proof of Address
Attach 2 scan copies of your home address (you can't use the same company twice for different months. You can use a utility/mobile bill, formal notice like HMRC letter or council tax or bank statement no older than 3 months).
    3
    Specific Declaration of Solvency (if applicable)
some solicitors provide you with the exact wording they require for the declaration. If this is the case then please attach.

Parachute Law Solicitors
27 Old Gloucester St,
Holborn,
London,
WC1N 3AX
T: 0207 183 4547
F: 0207 183 2973
 ParachuteLawSolicitors.png


CLIENT CARE AND TERMS OF ENGAGEMENT

These terms set out some important information about our professional relationship with you as well as our terms and conditions. It is vital that you read the information carefully. Please note that we only act for the addressee(s) of this letter. We will not correspond with any other parties about your file without your express written permission.

  • review the information relating to the declaration.
  • a video meeting to hear your declaration of solvency.
  • Draft and provide a Statutory Declaration. We do not provide any advice regarding the transaction you are undertaking.
 

Please note we will charge extra for:

  • Failing to attend your meeting. You can change a booked meeting time by giving us 24 hours prior to the meeting taking place. We will cancel the booked meeting and charge you a £50 rearrangement fee if: i) you rearrange less than 24 hours before the meeting time, ii) you are more than 15 minutes late for the meeting, iii) you fail to attend the meeting), iv) you do not provide in full all of the required documents for the ID1 or v) you do not provide adequate ID during the meeting.

Responsibility for your case

The person responsible for all of the work on your matter is Claudine Boast. She is assisted by Richard Dyke who will also be working on your matter under Claudine’s supervision.
 

Legal Fees

You have instructed based on a fixed fee for a specific scope of work. In the event further work is needed to be undertaken then our legal fees are calculated by reference to the time spent by our fee earners in respect of any work which they do on your behalf unless a further fixed fee is agreed at the outset in respect of a specific scope of work.
 

Billing Arrangements

We charge £420 INC VAT per hour for legal work. We charge in 10 minute units, rounding to the nearest 10 minutes. Our hourly rates are reviewed every year to reflect increases in overhead costs and inflation.
 
Normally the rates are reviewed with effect from 1 January each year.
 
For work that falls outside the scope of the fixed fee, then in accordance with our usual practice in long running cases, we shall deliver bills to you at regular intervals for work carried out during the conduct of this matter.
 

Cancellation Policy

You may cancel the instruction at any time and ask for a refund. We will keep what’s necessary to cover the cost of services provided up until you cancelled. For document and deed drafting services, the fee you have have paid is broken down as follows: 75% for production of the first draft, 25% for finalising and circulating the final version. Therefore, if you cancel having received the first draft, you will be entitled to receive 25% of your fee.
 

Service Levels

We will update you by telephone or by email with progress on your matter following receipt of important information about your matter or when any important event occurs in your matter.
 
We will communicate with you in plain language. Our preferred manner of communication is email. We do not normally send letters in the post, if you prefer another method of communication such as post or fax you should tell us. We will explain to you by telephone or by email the legal work required as your matter progresses.
 

Liability

If we fail to comply with these terms, we are responsible for loss or damage you suffer that is a foreseeable result of our breaking this contract or our failing to use reasonable care and skill but we are not responsible for any loss or damage that is not foreseeable. Loss or damage is foreseeable if either it is obvious that it will happen or if, at the time the contract was made, both we and you knew it might happen, for example, if you discussed it with us.
 
We do not exclude or limit in any way our liability to you where it would be unlawful to do so. This includes liability for the negligence of our employees, agents or subcontractors; for fraud or fraudulent misrepresentation; for breach of your legal rights in relation to the services including the right to receive services which are as described and supplied with reasonable skill and care.
 

Referral Arrangements

If your instructions have been passed to us by SAM Conveyancing a trading name of Share a Mortgage Ltd. then we must comply with Chapter 9 of the Solicitors' Regulation Authority Code of Conduct. We advise that we have a commercial arrangement with SAM Conveyancing relating to their introduction of clients to us. We believe that this relationship is of benefit to you, enhancing the delivery of our services. Upon completion of this matter, we will make a referral payment to them. To be clear, this payment is made by us and is not an additional payment that we require from you.
 
By signing the Acceptance Form, you confirm that you are giving us permission to disclose information relating to your matter to SAM Conveyancing. If you do not agree that we may do so, please advise us in writing. If at any time we feel that a conflict of interest may arise as a result of our relationship with SAM Conveyancing we will cease acting.
 

Our Standard of Care

The legal services that we provide are authorised and regulated by the Solicitors Regulation Authority whose rules can be inspected at www.sra.org.uk. Our registration number with the Solicitors Regulation Authority is 646947. These terms and conditions are set out to comply with certain legal requirements in part and the professional requirements and advice of the Solicitors Regulation Authority and the Law Society. Their other purpose is to indicate to clients as clearly as possible the standard of service that they can expect from us, the amounts that we will charge for the work that we do and our methods of charging.
 
These terms and conditions do not affect statutory and common law rules that govern solicitors’ business.
However, if there is a conflict between the terms and conditions and such rules, the terms and conditions will prevail so far as it is possible for them to do so.
 
When the words ‘we’ and ‘us’ are used in these terms and conditions, they mean Parachute Law Solicitors.
 
Your responsibilities include the following:
  1. You will provide us with clear, timely and accurate information.
  2. You will inform us of any changes in your circumstances or awareness which may affect your file.
  3. You will provide all documentation required to progress matters in a timely manner.
 

Complaints

We are committed to high quality legal advice and client care. If you are unhappy about any aspect of the service you have received or about the bill, please contact Parachute Law on 0207 183 4547, thelegalteam@parachutelaw.co.uk or by post to our office.
 
We have eight weeks to consider your complaint. If we have not resolved it within this time you may complain to the Legal Ombudsman. If you are not satisfied with our handling of your complaint you can ask the Legal Ombudsman at PO Box 6167, Slough, SL1 0EH, to consider the complaint.
 
Normally, you will need to bring a complaint to the Legal Ombudsman within six months of receiving a final written response from us about your complaint or within one year of the act or omission about which you are complaining occurring (or if outside of this period, within one year of when you should reasonably have been aware of it).
 
Read our full complaints handling procedure here.
 

Complaints about our bills

If you are not satisfied about our bill you are entitled to challenge or make a complaint about that bill. You may also apply to the court for an assessment of our bill under Part III of the Solicitors Act 1974.
 

Interest on Unpaid Bills

If all or part of the bill remains unpaid, we may be entitled to charge interest.
 

Professional Indemnity Insurance

We have Professional Indemnity Insurance to cover work undertaken by us in England and Wales. Our insurers are:
Travelers Insurance Company Limited
61-63 London Road
Redhill
Surrey
RH1 1NA
 

Data Protection

The way in which we use your personal data is regulated by data protection legislation in addition to our professional duty of confidentiality. Our up-to-date privacy notice is available on our website (www.parachutelaw.co.uk). We may amend our privacy notice periodically to ensure it is operating effectively and complies with relevant laws and regulations. Where you provide any personal data to us (including that of third parties involved in the matter), you are responsible for ensuring that disclosure by you or on your behalf to us for use by us in the provision of our services complies with the requirements of data protection legislation.
 
You have the sole responsibility for the accuracy, quality and legality of the personal data you provide to us.
 

Storage of Documents

After completing the work, we will be entitled to keep all your papers and documents while there is still money owed to us for fees and expenses. We will keep our file of your papers for up to 6 years. We keep files on the understanding that we can destroy them 6 years after the date of the final bill. We do not offer the service of storing documents in safe custody.
 

Notice of right to Cancel

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 give you the right to cancel your agreement with us, without giving any reason, at any time during the 14 days immediately following the day that you return the copy of this letter (the "cooling off period"). Rather than our waiting for the cooling off period to expire before starting work on your file, at your election, we can start work for you right away however you will then lose your right to cancel and you will be responsible for the fees incurred by us for the work that we have undertaken for you. If you would like us to commence work before the end of the cancellation period, please tick the box indicating your Agreement to Commence Work, when signing and returning the copy of this letter of engagement or later, if appropriate. This may mean that you lose the right to cancel.
 
You will be required to pay for the services provided to you, with your agreement, before the end of the cancellation period. Please note that under the firm's terms of engagement you have the right to instruct us to stop work at any time (whether during or after the cancellation period).
 
We reserve the right to destroy all paper documents and to store an electronic copy only.
If you want us to return any paper documents to you at the end of a case you must inform us in writing. If we take papers or documents out of storage in relation to continuing or new instructions to act for you, we will not normally charge for such retrieval.
 
However we may charge you both for:
  1. time spent producing stored papers that are requested
  2. reading, correspondence or other work necessary to comply with your instructions in relation to the retrieved papers
 

Cancellation Policy

You may cancel the instruction at any time and ask for a refund. We will keep what’s necessary to cover the cost of services provided up until you cancelled. For document and deed drafting services, the fee you have have paid is broken down as follows: 75% for production of the first draft, 25% for finalising and circulating the final version. Therefore, if you cancel having received the first draft, you will be entitled to receive 25% of your fee.
 

Outsourcing

Sometimes we ask other companies or people to do typing/photocopying/other work on our files to ensure this is done promptly. We will always seek a confidentiality agreement with these outsourced providers. If you do not want your file to be outsourced, please tell us as soon as possible.
 

Auditing and Vetting of Files

External firms or organisations may conduct audit or quality checks on our practice. These external firms or organisations are required to maintain confidentiality in relation to your files.
 

Terminating this Retainer

You may end your instructions to us in writing at any time, but we can keep all your papers and documents while there is still money owed to us for fees and expenses. We may decide to stop acting for you only with good reason. We must give you reasonable notice that we will stop acting for you.
 
If you or we decide that we should stop acting for you, you will pay our charges up until that point. These are calculated on an hourly basis plus expenses or by proportion of the agreed fee as set out in these terms and conditions depending on the whether you have paid a fixed fee or are paying for our services at an hourly rate.
 

Disclosure

We are professionally and legally obliged to keep your affairs confidential. However, solicitors may be required by statute to make a disclosure to the Serious Organised Crime Agency where they know or suspect that a transaction may involve money laundering or terrorist financing. If we make a disclosure in relation to your matter, we may not be able to tell you that a disclosure has been made. We may have to stop working on your matter for a period of time and may not be able to tell you why.
 

Distance Selling Regulations

If we have not met with you in person then Consumer Protection (Distance Selling) Regulations 2000 apply to this work. This means you have the right to cancel your instructions to us within seven working days of receiving this letter. You can cancel your instructions by contacting us by post or email to this office. Once we have started work on your file, you will be charged for the work that we have done if you then cancel your instructions.
 

Cash Payment to Third Parties

We confirm that we will carry out the necessary checks in order to verify the identity of our client for the delivery of the Service. If you are required by your conveyancing solicitor or a mortgage lender to obtain certified ID then you can do so by:
 
  • Click here to book and pay for an appointment to certify your ID via video conference. This service is not included within your original fee as it is not required to provide independent legal advice. Book a meeting to certify documents.
  • Find a solicitor local to you to certify your ID via video conference.
 

Accepting our Terms of Business

 
By ticking the button online "I Agree to the Terms & Conditions" in this form you are accepting these terms of service. If terms received by email then please email thelegalteam@parachutelaw.co.uk stating "I Agree to the Terms & Conditions".
 
Last updated: 28th August 2024

Statutory Declaration

Fixed Solicitor Fee

£0.00

Discount Code

Apply Remove

Have you already paid?

Type payment code from email here:

Make Payment

Please select your preferred payment menthod below

Loading....
Pending...
Prev
Next

You can make the declaration yourself, but it must be sworn by a solicitor.
 
  • 1
    Subject as follows in this section and sections 341 and 342, where an individual is adjudged bankrupt and he has at a relevant time (defined in section 341) entered into a transaction with any person at an undervalue, the trustee of the bankrupt’s estate may apply to the court for an order under this section.
 
  • 2
    The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not entered into that transaction.
 
 
Frequently Asked Questions

Under the Insolvency Act 1986 - Section 123 - Definition of inability to pay debts it states "A company is also deemed unable to pay its debts if it is proved to the satisfaction of the court that the value of the company’s assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities".

Under the Insolvency Act 1986 - Declaration of solvency, Section 89 - Statutory declaration of solvency Directors of a company are required to make a declaration of solvency when voluntarily winding up a company.

You need to sign a declaration of solvency in the presence of a solicitor who counter signs your signature. The solicitor doesn't check your financial position, they only witness your signature.