Indemnity Insurance of Maisonette Bank conveyancing obligations
Coventry BS and Nationwide, as with many mortgage companies, dictate their own specific instructions when it comes to maisonette indemnity insurance. The purpose of this page to assist conveyancing practitioners on the numerous bank conveyancing panel where the title for the the property to be mortgaged contains maisonette. It is not a substitute for checking the CML handbook requirements for each mortgage company, be it Halifax, Yorkshire Building Society or Barnsley BS. The content on this page is not focused on maisonette indemnity insurance requirements.
Need help with maisonette indemnity insurance from your lender?
Leeds Building Society and Godiva Mortgages like many lenders, instructions are such that where maisonette indemnity insurance is effected:
- the maisonette indemnity insurance policy should not contain conditions that you recognise would void or prejudice the interests of the bank
- your practice are responsible for approving the terms of the maisonette policy on behalf of the lender
- the maisonette indemnity insurance policy should be effected at no expense to the lender
- your practice must supply a copy of the maisonette indemnity insurance to the mortgagor and explain to the mortgagor why the maisonette indemnity insurance policy was effected and that a further policy could be mandatory if there is additional borrowing against the mortgaged property
- you must explain to the mortgagor that the borrower must 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 relation to the insurance
- the maisonette indemnity insurance policy must be in favor of the bank and, wherever possible, in favour of the mortgagor and any subsequent owner or mortgage company. If the mortgagor will not be covered by the maisonette indemnity insurance policy, you must advise the mortgagor of this fact.
- your firm must reveal to the insurer all relevant information which you have acquired
- the limit of indemnity must satisfy the requirements for the bank (See Part II Handbook requirements )
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Bank | |
| Birmingham Midshires | |
| Britannia | |
| Darlington Building Society | |
| Godiva Mortgages | |
| Habito | |
| Lloyds | |
| M&S Bank | |
| Masthaven Bank | |
| National Counties Building Society | |
| Nedbank | |
| Perenna | |
| Precise Mortgages 2026 | |
| Rely Mortgages | |
| Scottish Widows | |
| Tandem Bank | |
| RBS - Direct Line | |
| Royal Bank of Scotland -Natwest One | |
| Vida Homeloans |
Non lender-specific considerations
The extent of the terms for maisonette indemnity insurance are identified in the policy document. Conveyancing Practitioners are obliged to direct your non-lender client to the maisonette indemnity insurance policy document. Maisonette Contingency insurance is devised to grant indemnity in respect of the risks set out in the policy schedule - so it’s important to check any draft to determine that it is in order. The lifetime of this non-investment insurance agreement is in perpetuity unless otherwise stated in the maisonette indemnity insurance policy. Adequacy in this regard should be checked.Significant aspects and benefits of maisonette indemnity insurance :
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. Maisonette indemnity insurance Policies are likely to cover the following- Loss in market value due to the successful enforcement of the risks specified in the maisonette indemnity insurance.
- Reimbursement for compensation incurred in any action concerning the risks specified in the maisonette indemnity insurance, as well as solicitors charges.
- All sums paid with the written consent of the insurance company to free the land from the risks specified in the maisonette policy.
- All ancillary costs and expenses incurred by the Insured with consent in writing from the relevant insurance company
- The out of pocket expenses of altering or demolishing 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.
- The cost of works (including architects’ and surveyors’ fees) for the purpose of the development commenced, 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.
Always check what is excluded from the maisonette indemnity insurance e.g. does the policy cover any property that has been altered within the year prior to the commencement of the policy? Are legal costs covered?
Further 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 conveyancing 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 content set out above is in relation to properties in England and Wales.