Indemnity Insurance of Matrimonial Homes Act Bank conveyancing instructions
Virgin Money and Skipton, in common with most lenders, dictate their own specific instructions when it comes to matrimonial homes act indemnity insurance. The content herein aims to help conveyancing lawyers on the numerous lender conveyancing panel where the title for the the property to be mortgaged incorporates matrimonial homes act. Solicitors should still check the CML handbook requirements for each lender, for example Barnsley BS, Yorkshire Building Society or HSBC. The content on this page is not focused on matrimonial homes act indemnity insurance requirements.
Need help with matrimonial homes act indemnity insurance from your lender?
Godiva Mortgages and Birmingham Midshires as with the majority of banks, instructions are such that where matrimonial homes act indemnity insurance is to be taken out:
- the matrimonial homes act indemnity insurance policy should not contain terms which you are aware would invalidate or prejudice the interests of the bank
- the matrimonial homes act indemnity insurance policy needs to be for the benefit of the mortgage company and, if possible, for the benefit of the mortgagor and any subsequent owner or mortgage company. Where the mortgagor will not be covered by the matrimonial homes act indemnity insurance policy, you must advise the mortgagor of this fact.
- you is obliged to disclose to the insurer all relevant information which you have obtained
- you are responsible for approving the terms of the matrimonial homes act policy on behalf of the bank
- the matrimonial homes act indemnity insurance policy should be effected without charge to the lender
- the limit of indemnity must meet the requirements for the mortgage company (see UK Finance Lenders’ Handbook Part 2 )
- your practice is duty bound to spell out to the mortgagor that the borrower will need to comply with any conditions of the matrimonial homes act indemnity insurance policy and that the borrower should notify the lender of any notice or potential claim in respect of the insurance
- your firm must provide a copy of the matrimonial homes act indemnity insurance to the borrower and explain to the mortgagor why the matrimonial homes act indemnity insurance policy was effected and that a further policy could be required if there is supplemental lending against the mortgaged property
| 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. |
| Allied Irish Bank | At least the amount of the mortgage advance. |
| Co operative Bank | An amount equal to at least 110% of 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. |
| Kent Reliance | An amount at least equal to 110% of the mortgage valuation. |
| LendInvest | An amount at least equal to the valuation of the property. |
| LiveMore | An amount equal to the purchase price or value of the property, whichever is higher |
| MPowered Mortgages | Either the minimum reinstatement value or where there is no valuation the market value/purchase price figure (whichever is higher). |
| 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. |
| NRAM Ltd | 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. |
| New Street Mortgages | Must be for a minimum of 110% of the purchase price or valuation whichever is the greatest. |
| Perenna | The higher of the purchase price or valuation. |
| Rooftop Mortgages | The value of the property for mortgage purposes as disclosed in the valuation. |
| Scottish Building Society | Amount of mortgage plus 25%. |
| Scottish Widows | The value of the property. |
| State Bank of India UK | The purchase price or value of the property, whichever is the higher. |
| Virgin | We require the full market value of the Property. Where this isn't available, we'll accept the loan amount as a minimum. |
General Matrimonial Homes Act indemnity insurance points to consider
The full terms, conditions and exclusions for matrimonial homes act indemnity insurance are explained in the policy paperwork. Property lawyers should point your non-lender client to the matrimonial homes act indemnity insurance policy itself. The intention of matrimonial homes act indemnity insurance is to provide indemnity in respect of the risks set out in the policy schedule - so it’s important to check the document to determine that it is correct. The continuance 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 indemnity insurance: Significant aspects and benefits:
The insurance 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 Cover normally includes- The cost of 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 matrimonial homes act insurance, to the extent that such costs are rendered abortive by court decision.
- Reimbursement for compensation incurred in any action regarding the risks specified in the matrimonial homes act insurance, as well as legal and associated costs.
- All ancillary costs and expenses incurred by the Insured with consent in writing from the relevant insurance company
- Money paid with consent in writing from the insurance company to free the property from the risks specified in the matrimonial homes act policy.
- Market value reduction due to the successful enforcement of the risks specified in the matrimonial homes act indemnity insurance.
- 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.
You also need to be sure that the answers on the application form are accurate. However remote the likelihood of a claim on the mortgage company insurance policy might be you can certain that the insurer will check the details on any proposal form very carefully before any claim is paid out.
Additional considerations for matrimonial homes act indemnity insurance
Matrimonial Homes Act insurance may satisfy lenders such as Barclays or Lloyds TSB and prevent clients from from suffering financially but it cannot compensate for the stress and inconvenience the emotional suffering - after all the value of a home cannot always be measured in cash in the eyes of the owner. Content 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 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 content set out above is in relation to properties in England and Wales.