Maisonette Indemnity Insurance Lender conveyancing requirements
Coventry BS and Bank of Scotland, in common with most banks, have their own specific instructions when it comes to maisonette indemnity insurance. The purpose of this page to assist conveyancing practitioners on the various mortgage company solicitors panel where the title for the the property to be mortgaged includes maisonette. It is not a substitute for checking the CML handbook requirements for each mortgage company, be it Accord, Santander or Leeds Building Society. The information on this page is not focused on maisonette indemnity insurance requirements.
Need help with maisonette indemnity insurance from your lender?
Natwest and Yorkshire Building Society in common with most mortgage companies, instructions are such that where maisonette indemnity insurance is to be taken out:
- you must approve the terms of the maisonette policy on behalf of the lender
- the maisonette indemnity insurance policy must not incorporate terms that you recognise would void or prejudice the interests of the lender
- your practice is required to reveal to the insurer all relevant information which you have obtained
- your firm must send a duplicate of the maisonette indemnity insurance to the mortgagor and explain to the borrower why the maisonette indemnity insurance policy was effected and that additional insurance could be necessary if there is supplemental lending against the mortgaged property
- the maisonette indemnity insurance policy should be effected without expense to the mortgage company
- the minimum level of cover for the policy must satisfy the requirements for the lender (See Part II Handbook requirements )
- you is duty bound to point out to the borrower that the borrower will need to 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 needs to be in favor of the lender and, wherever possible, for the benefit of the mortgagor and any next registered proprietor or bank. If the mortgagor will not be covered by the maisonette indemnity insurance policy, you must advise the mortgagor of this fact.
| Lender | Requirement |
|---|---|
| Allied Irish Bank | At least the amount of the mortgage advance. |
| 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.]
|
| Barclays plc | Higher of purchase price or valuation |
| Chelsea Building Society | 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. |
| Coventry Building Society | Minimum of the value of the property. |
| Fleet Mortgages | An amount at least equal to the valuation of the property. |
| Foundation Home loans | An amount equal to 110% of the valuation or purchase price - whichever is the greater. |
| Furness Building Society | Property valuation or purchase price, whichever the greater. |
| ITL Mortgages | Minimum of the value of the property. |
| Lloyds | The value of the property. |
| Masthaven Bank | An amount at least equal to the total mortgage advance. Any indemnity insurance policy must protect the borrowers, any successors in title and any mortgagee. |
| Precise Mortgages | An amount at least equal to 110% of the mortgage valuation. |
| Principality Building Society | Full market value of the property is preferred but if this is not available we will accept the loan advance amount as minimum. You must approve the policy on our behalf. The estimated property value is stated in the Mortgage Offer in remortgage cases. Otherwise it will be stipulated in the Valuation. |
| Rely Mortgages | An amount at least equal to 110% of the mortgage valuation. |
| TSB | The value of the property |
| Royal Bank of Scotland | An amount equal to the value of the property. |
| RBS (One Account) | An amount equal to the value of the property. |
| Yorkshire Bank | Open market value of property. |
General Maisonette indemnity insurance points to consider
The full terms, conditions and exclusions for maisonette indemnity insurance are identified in the policy paperwork. Conveyancing Practitioners should direct your non-lender client to the maisonette indemnity insurance policy document. The intention of maisonette indemnity insurance is to provide indemnity in respect of the risks specified in the policy schedule - so you should check the schedule to ensure it is in order. The continuance of this non-investment insurance contract is in perpetuity unless the policy says something to the contrary. Again, please check that this is as you expected.Maisonette Contingency insurance: Important aspects and benefits:
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 should be checked for the following- All ancillary costs and expenses incurred by the Insured with consent in writing from the relevant insurance company
- Loss in market value resulting from the successful enforcement of the risks specified in the maisonette insurance.
- 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 maisonette insurance, to the extent that such costs are rendered abortive by court decision.
- All sums paid with consent in writing from the insurance company to liberate the property from the risks specified in the maisonette policy.
- Cover for compensation incurred in any action in respect of the risks specified in the maisonette policy, including legal and associated costs.
- 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.
Due diligence should extend to checking that the answers on the application form are correct. Regardless of how remote a claim on the mortgage company insurance policy might be you can rest assured that the insurer will check the details on any proposal form very carefully prior to any claim being admitted.
Other 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 provided on this webpage is for general information for conveyancers and solicitors in England and Wales on the the bank solicitor panel, it does not constitute advice for members of the public who should contact their lawyer for advice relating to the bank 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 covers to properties in England and Wales.