Matrimonial Homes Act Indemnity Insurance Mortgage Company conveyancing requirements
Nationwide and Godiva Mortgages, in common with the majority of banks, set their own requirements when it comes to matrimonial homes act indemnity insurance. The content herein aims to help conveyancing lawyers on the numerous lender approved list of panel lawyers where the title for the the property to be mortgaged contains matrimonial homes act. It is not a alternative for checking the Council of Mortgage Lenders’ handbook requirements for each mortgage company, whether it be Leeds Building Society, Halifax or Santander. The information on this page Is not to be read as matrimonial homes act indemnity insurance advice.
Need help with matrimonial homes act indemnity insurance from your lender?
Coventry BS and Virgin Money as with many banks, requirements are that where matrimonial homes act indemnity insurance is to be taken out:
- your practice must supply a copy of the matrimonial homes act indemnity insurance to the borrower and explain to the borrower why the matrimonial homes act indemnity insurance policy was effected and that a further policy might be mandatory if there is additional lending against the mortgaged property
- the matrimonial homes act indemnity insurance policy should always be in favor of the mortgage company and, wherever possible, for the benefit of the mortgagor and any next owner or mortgage company. If the borrower will not be covered by the matrimonial homes act indemnity insurance policy, the mortgagor should be advised accordingly.
- the matrimonial homes act indemnity insurance policy must not contain terms which you know would void or prejudice the interests of the mortgage company
- your firm must reveal to the insurer all relevant information which you have acquired
- the limit of indemnity must meet the requirements for the bank (see UK Finance Lenders’ Handbook Part 2 )
- you are responsible for approving the terms of the matrimonial homes act policy on behalf of the lender
- the matrimonial homes act indemnity insurance policy must be effected without cost to the bank
- you must spell out to the borrower that the borrower is obliged to adhere to any conditions of the matrimonial homes act indemnity insurance policy and that the borrower should notify the mortgage company of any notice or potential claim in respect of the insurance
| 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. |
| Aldermore Bank | 110% of the purchase price or valuation, whichever is greater. 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). Where a property is being sold at undervalue and an equity gift is being provided, the conveyancer must ensure the seller obtains an Insolvency Act Indemnity Insurance Policy and provides evidence to you, so that you are comfortable an appropriate policy is in place to Aldermore’s satisfaction. This indemnity insurance aims to cover Aldermore against any future claims by creditors of the seller that may challenge the sale. |
| Barnsley 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. |
| Birmingham Midshires | An amount equal to at least 110% of the purchase price or value, whichever is higher. |
| Bradford & Bingley | Amount of loan + 15% |
| Coventry Building Society | Minimum of the value of the property. |
| First Direct | The value of the insurance must be for at least the full value of the property |
| Furness Building Society | Property valuation or purchase price, whichever the greater. |
| 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 TSB Scotland | The value of the property |
| Parity Trust | An amount equal to at least 110% of the mortgage advance |
| 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). |
| Platform | 110% of principal sum. |
| Rooftop Mortgages | The value of the property for mortgage purposes as disclosed in the valuation. |
| Scottish Widows | The value of the property. |
| TSB | The value of the property |
| RBS - Direct Line | An amount equal to the value of the property. |
| Virgin | We require the full market value of the Property. Where this isn't available, we'll accept the loan amount as a minimum. |
| Yorkshire Bank | Open market value of property. |
Non lender-specific considerations
The full terms, conditions and exclusions for matrimonial homes act indemnity insurance are shown in the policy document. Conveyancing Practitioners are obliged to point your non-lender client to the matrimonial homes act indemnity insurance policy document. The intention of matrimonial homes act indemnity insurance is to provide indemnity in respect of the risks set out in the policy schedule - so you should check the schedule to determine that it is correct. The lifetime of this non-investment insurance agreement is in perpetuity unless otherwise stated in the matrimonial homes act indemnity insurance policy. It is well worth checking that the time frame is correct.Matrimonial Homes Act Contingency insurance: Important aspects and benefits:
The policy will normally cover where someone claims to be entitled to the benefit of the specified risks, stated in the matrimonial homes act indemnity insurance schedule. Matrimonial Homes Act indemnity insurance Policies should be checked for the following- Market value reduction due to the successful enforcement of the risks specified in the matrimonial homes act indemnity insurance.
- Money paid with consent in writing from the insurance company to liberate the property from the risks specified in the matrimonial homes act insurance.
- The cost of works (including professional fees) for the purpose of the development started, prior to proceedings for the enforcement of the risks specified in the matrimonial homes act indemnity insurance, to the extent that such costs are rendered abortive by court order.
- Liability for damages or compensation incurred in any action concerning the risks specified in the matrimonial homes act policy, as well as solicitors charges.
- All other costs and expenses incurred by the Insured with the written consent of the relevant insurance company
- 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.
You also need to be sure that the answers on the application form are correct. However remote the likelihood of a claim on the bank insurance policy might be you can rest assured that the insurer will check the details on any proposal form thoroughly before any claim is met.
Matrimonial Homes Act Indemnity Insurance has limitations - Other considerations
Bear in mind, that if a covenant is breached and changes have to be made, simply getting monetary compensation from matrimonial homes act insurance may be adequate for your client. Information provided on this webpage is for general information for Regulated law firms in England and Wales on the the bank approved 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 matrimonial homes act 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.