Maisonette Indemnity Insurance Bank conveyancing requirements
Yorkshire Bank Home Loans and Bank of Scotland, as with the majority of banks, have their own requirements when it comes to maisonette indemnity insurance. This page is designed to help domestic conveyancing solicitors on the various mortgage company solicitors panel where the title to be charged incorporates maisonette. Lawyers are advised to familiarise themselves with the Council of Mortgage Lenders’ handbook requirements for each bank, whether it be Halifax, Accord or Virgin Money. The information on this page Is not to be read as maisonette indemnity insurance advice.
Need help with maisonette indemnity insurance from your lender?
Lloyds TSB and Yorkshire Building Society in common with most mortgage companies, instructions are such that where maisonette indemnity insurance is to be put on risk:
- your firm must spell out to the mortgagor that the borrower will need to adhere to any conditions of the maisonette indemnity insurance policy and that the borrower should notify the bank of any notice or potential claim in respect of the policy
- the maisonette indemnity insurance policy should be effected without charge to the mortgage company
- the level of indemnity must meet the requirements for the mortgage company (See Part II Handbook requirements )
- your practice are responsible for approving the terms of the maisonette policy on behalf of the mortgage company
- the maisonette indemnity insurance policy should not incorporate conditions which you recognise would invalidate or prejudice the interests of the lender
- the maisonette indemnity insurance policy should always be in favor of the lender and, if possible, in favour of the mortgagor and any future registered proprietor or lender. Where the mortgagor will not be protected by the maisonette indemnity insurance policy, the borrower should be advised accordingly.
- you must supply a duplicate of the maisonette indemnity insurance to the borrower and explain to the mortgagor why the maisonette indemnity insurance policy was effected and that additional insurance might be required if there is further lending against the security of the property
- you must disclose to the insurer all relevant information which you have acquired
| Lender | Requirement |
|---|---|
| Accord 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 mortgagee. |
| Britannia | Cover to the full value of the property. |
| Family Building Society | An amount at least equal to the mortgage advance. |
| Gen H | An amount equal to the value of the property unless specifically agreed in writing otherwise. |
| Halifax Loans | An amount at least equal to the mortgage advance. |
| Hinckley and Rugby | The policy must be for our benefit and for no less than the amount lent to the borrower, including retentions, stage payments and interest. |
| Hodge | 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. |
| Keystone Property Finance | An amount equal to 110% of the valuation or purchase price - whichever is the greater |
| Landbay Partners | An amount equal to 100% of the property valuation or purchase price (whichever is greater) plus 10%. |
| Landmark | Preference for full market value of the property, but if this level of cover is not available, will accept a minimum of the actual loan amount. You must approve the policy on our behalf. |
| Lloyds | The value of the property. |
| Market Harborough Building Society | Purchase price or valuation - higher of the two |
| Nedbank | You are to refer to us for specific instructions on any matter involving indemnity insurance. |
| Pepper Money | An amount equal to at least 110% of 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 and also the borrower(s). |
| Sainsbury's Bank | An amount equal to the higher of the value of the property or the purchase price. |
| Scottish Widows | The value of the property. |
| Skipton Building Society | For lender only cover we will accept a minimum of 110% (index-linked) of the amount of the loan. |
| Together Personal Finance | Minimum of £2,000,000.00 per claim. |
| Vida Homeloans | It must be for a minimum of 110% of the purchase price or valuation, whichever is greater |
| Zephyr Mortgages | Valuation or purchase price, whichever is higher. The policy must always benefit the borrower and any subsequent owner or mortgagee - the policy must be index linked. |
General Maisonette indemnity insurance points to consider
The extent of the terms for maisonette indemnity insurance are shown in the policy document. Conveyancing Practitioners should direct the borrower to the maisonette indemnity insurance policy paperwork. Maisonette indemnity insurance is devised to afford indemnity in respect of the risks specified in the policy schedule - so it is essential check the document to determine that it is correct. The continuance of this non-investment insurance contract is in perpetuity unless otherwise stated in the maisonette indemnity insurance policy. Adequacy in this regard should be checked.Important features and benefits of maisonette Contingency insurance :
This policy would usually provide protection from financial loss that might arise in the event of a third party making a cliam in respect of the risks identified in the policy document. Maisonette indemnity insurance Policies are likely to cover the following- Diminution in value due to the successful enforcement of the risks specified in the maisonette insurance.
- Expenses for works (including professional fees) for the purpose of the development started, prior to proceedings for the enforcement of the risks specified in the maisonette indemnity insurance, to the extent that such costs are rendered abortive by court decision.
- Reimbursement for compensation incurred in any proceedings concerning the risks specified in the maisonette indemnity insurance, as well as fees of a legal nature.
- The out of pocket expenses 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.
- All ancillary costs and expenses incurred by the Insured with consent in writing from the relevant insurance company
- All sums paid with the written consent of the insurance company to liberate the property from the risks specified in the maisonette indemnity insurance.
As is the case with all conventional insurance, all material information needs to be disclosed to the insurance company at the outset and throughout the policy term, otherwise the maisonette policy will be invalidated.
Further considerations for maisonette indemnity insurance
Maisonette Indemnity insurance isn’t a solution to all of the relevant problems. Information contained within this webpage is for general information for Regulated law firms in England and Wales on the the mortgage company solicitor panel, it does not constitute advice for members of the public who should contact their lawyer for advice relating to the lender indemnity insurance. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.
An important exclusion applying to most maisonette Policies is if you make any contact with any party who might cause a claim under the Policy, it can invalidate the cover.
The content set out above is in relation to properties in England and Wales.