Indemnity Insurance of Maisonette Mortgage Company conveyancing instructions
Virgin Money and Barnsley BS, in common with many mortgage companies, have their own specific instructions when it comes to maisonette indemnity insurance. This page is designed to help property law solicitors on the various bank approved list of panel lawyers where the title to be charged includes maisonette. Solicitors should still check the CML handbook requirements for each mortgage company, for example Birmingham Midshires, Skipton or RBS. The information on this page Is not to be read as maisonette indemnity insurance advice.
Need help with maisonette indemnity insurance from your lender?
Halifax and Santander like the majority of lenders, requirements are that where maisonette indemnity insurance is to be put on risk:
- the limit of indemnity must satisfy the requirements for the mortgage company (see UK Finance Lenders’ Handbook Part 2 )
- 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 for the benefit of the mortgage company and, if possible, for the benefit of the mortgagor and any future owner or bank. Where the mortgagor will not be protected by the maisonette indemnity insurance policy, you must advise the borrower of this fact.
- your practice is required to disclose to the insurer all relevant information which you have gathered
- you must approve the terms of the maisonette policy on behalf of the bank
- your practice is duty bound to explain to the borrower that the borrower must comply with any conditions of the maisonette indemnity insurance policy and that the borrower should notify the mortgage company of any notice or potential claim in relation to the insurance
- the maisonette indemnity insurance policy must be effected without cost to the bank
- your firm must send 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 a further policy might be required if there is additional lending against the mortgaged property
| 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. |
| Aviva Equity Release | Full value of the property. |
| Bank of China | Cover to full value of the property or the Mortgage Advance, whichever is the higher. |
| Bank of Ireland Mortgages | The limit of indemnity must be an amount not less than the market value of the property. |
| Coutts & Co | The open market value of the property according to the valuation report. |
| Gen H | An amount equal to the value of the property unless specifically agreed in writing otherwise. |
| Habito | Higher of purchase price or valuation |
| Kent Reliance | An amount at least equal to 110% of the mortgage valuation. |
| Magellan Homeloans | At least equal to the value of the property |
| Manchester Building Society | Purchases- higher of the Purchase price & valuation Re-mortgages- Loan x 115%. |
| ModaMortgages | An amount at least equal to 110% of the mortgage valuation. |
| 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. |
| Mortgage Agency Services | 110% of the purchase price or valuation, whichever is greater |
| National Counties Building Society | An amount at least equal to the mortgage advance. |
| Paratus | An amount equal to 110% of the valuation or purchase price - whichever is the greater. |
| Reliance Bank | \xA31,000,000.00 |
| Rooftop Mortgages | The value of the property for mortgage purposes as disclosed in the valuation. |
| Sainsbury's Bank | An amount equal to the higher of the value of the property or the purchase price. |
| Tandem Bank | An amount at least equal to 110% of the purchase price or valuation – whichever is the greater. |
| Royal Bank of Scotland -Natwest One | An amount equal to the value of the property. |
Maisonette Contingency Insurance : Reflections
The full terms, conditions and exclusions for maisonette indemnity insurance are shown in the policy document. Property lawyers are obliged to point the borrower to the maisonette indemnity insurance policy document. Maisonette Contingency insurance is designed to provide indemnity in respect of the risks specified in the policy schedule - so it is essential check the schedule to determine that it is as it should be. The duration of this non-investment insurance contract is in perpetuity unless otherwise stated in the maisonette indemnity insurance policy. It is well worth checking that the time frame is correct.Important characteristics and benefits of maisonette Contingency insurance :
The insurance will normally cover where someone claims to be entitled to the benefit of the specified risks, stated in the maisonette indemnity insurance schedule. Maisonette indemnity insurance Cover normally includes- The cost of altering or destroying 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.
- Expenses for works (including professional fees) for the purpose of the development begun, or contracted for, prior to proceedings for the enforcement of the risks specified in the maisonette insurance, to the extent that such costs are rendered abortive by court decision.
- All ancillary costs and expenses incurred by the Insured with consent in writing from the relevant insurance company
- Liability for damages or compensation incurred in any proceedings in respect of the risks specified in the maisonette policy, as well as solicitors charges.
- Money paid with consent in writing from the insurance company to liberate the property from the risks specified in the maisonette indemnity insurance.
- Market value reduction due to the successful enforcement of the risks specified in the maisonette indemnity insurance.
As with any insurance policy, 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.
Supplemental considerations for maisonette indemnity insurance
Bear in mind, that if a covenant is breached and changes have to be made, simply getting monetary compensation from maisonette insurance may be adequate for your client. Information contained within this webpage is for general information for conveyancers and solicitors in England and Wales on the the lender 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 above information is in relation to properties in England and Wales.