Missing Deeds Indemnity Insurance Mortgage Company conveyancing requirements
Yorkshire Bank Home Loans and Natwest, in common with many mortgage companies, dictate their own requirements when it comes to missing deeds indemnity insurance. This page sets out to enlighten domestic conveyancing solicitors on the different mortgage company approved list of panel lawyers where the title to be charged incorporates missing deeds. It is not a substitute for checking the CML handbook requirements for each lender, for example Accord, Coventry BS or HSBC. The content on this page is not focused on missing deeds indemnity insurance requirements.
Need help with missing deeds indemnity insurance from your lender?
Virgin Money and Skipton as with the majority of lenders, requirements are that where missing deeds indemnity insurance is effected:
- your practice is duty bound to spell out to the borrower that the borrower will need to adhere to any conditions of the missing deeds indemnity insurance policy and that the mortgagor should notify the lender of any notice or potential claim in respect of the policy
- the missing deeds indemnity insurance policy should always be for the benefit of the bank and, if possible, in favour of the mortgagor and any next owner or lender. If the borrower will not be protected by the missing deeds indemnity insurance policy, you must advise the borrower of this fact.
- the missing deeds indemnity insurance policy should not contain conditions that you know would void or compromise the interests of the bank
- your firm is obliged to disclose to the insurer all relevant information which you have obtained
- the limit of indemnity must satisfy the requirements for the mortgage company (See Part II Handbook requirements )
- you are responsible for approving the terms of the missing deeds policy on behalf of the mortgage company
- you must supply a duplicate of the missing deeds indemnity insurance to the borrower and explain to the borrower why the missing deeds indemnity insurance policy was effected and that a further policy might be required if there is further lending against the mortgaged property
- the missing deeds indemnity insurance policy should be placed on risk at no cost to the bank
Lender | Requirement |
---|---|
Accord Mortgages | An amount at least equal to the amount of the mortgage advance. Any indemnity insurance policy must protect the borrowers, any successors in title and any mortgagee. |
Bank of Ireland | The limit of indemnity must be an amount not less than the market value of the property. |
Bank of Scotland Private | [This lender has not published an answer to this question. Please contact the lender.]
|
Coventry Building Society | Minimum of the value of the property. |
Halifax Loans | An amount at least equal to the mortgage advance. |
Hodge Equity Release | An amount equal to the purchase price or value, whichever is higher. Any indemnity insurance policy must be for our benefit, that of any transferee/assignee (legal or equitable) of the mortgage, the borrower(s) and any successor in Title. |
ITL Mortgages | Minimum of the value of the property. |
Intelligent Finance | An amount at least equal to the total of the initial mortgage advance plus any pre-agreed reserve. These amounts will be shown in the mortgage offer. |
Kensington Mortgage | Must be for a minimum of 110% of the purchase price or valuation whichever is the greatest. |
Magellan Homeloans | At least equal to the value of the property |
Molo Finance Buy to Let | An amount at least equal to the amount of the mortgage advance. Any indemnity insurance policy must protect the borrowers, any successors in title and any mortgages. |
National Westminster Bank | An amount equal to the value of the property. |
Nationwide Building Society | Purchase Price (valuation if price is at a discount). Contact Issuing Office for advice on a remortgage |
Nedbank | You are to refer to us for specific instructions on any matter involving indemnity insurance. |
Precise Mortgages | An amount at least equal to 110% of the mortgage valuation. |
Reliance Bank | \xA31,000,000.00 |
Saffron Building Society | Higher of purchase price or valuation. Any indemnity insurance policy must be for our benefit, that of any transferee/assignee (legal or equitable) of the mortgage and also the borrower(s). |
St James Place | An amount at least equal to the total of the initial mortgage advance plus any pre-agreed reserve. These amounts will be shown in the mortgage offer. |
Whistletree | The value of the property |
Non lender-specific considerations
The extent of the terms for missing deeds indemnity insurance are shown in the policy paperwork. Conveyancing solicitors are obliged to point your non-lender client to the missing deeds indemnity insurance policy paperwork. Missing Deeds Contingency insurance is designed to provide indemnity in respect of the risks specified in the policy schedule - so it’s important to check any draft to determine that it is as it should be. The continuance of this non-investment insurance contract is in perpetuity unless the policy says something to the contrary. It is well worth checking that the time frame is correct.Missing Deeds indemnity insurance: Significant aspects and benefits:
Protection via such a policy is to cover the risk of third parties looking to enforce rights that can affect the use of a property. Missing Deeds indemnity insurance Cover normally includes- Expenses for works (including architects’ and surveyors’ fees) for the purpose of the development begun, or contracted for, prior to proceedings for the enforcement of the risks specified in the missing deeds insurance, to the extent that such costs are rendered abortive by court order.
- All ancillary costs and expenses incurred by the Insured with the written consent of the relevant insurer
- Money paid with consent in writing from the insurance company to liberate the land from the risks specified in the missing deeds indemnity insurance.
- Diminution in value due to the successful enforcement of the risks specified in the missing deeds indemnity insurance.
- The cost of altering or taking down all, or part of the development and the reinstatement of the land, insofar as such alteration, demolition or re-instatement is made necessary by court order.
- Reimbursement for compensation incurred in any action in respect of the risks specified in the missing deeds indemnity insurance, as well as fees of a legal nature.
You also need to be sure that the answers on the application form are accurate. Regardless of how remote a claim on the bank insurance policy might be you can be sure that the insurer will check the details on any proposal form very carefully before any claim is paid out.
Missing Deeds Indemnity Insurance has limitations - Additional considerations
Missing Deeds Indemnity insurance isn’t a solution to all of the relevant problems.The above information covers to properties in England and Wales.