Mortgage Company conveyancing panel requirements re Matrimonial Homes Act Indemnity Insurance
Coventry BS and Godiva Mortgages, in common with most mortgage companies, dictate their own requirements when it comes to matrimonial homes act indemnity insurance. The content herein aims to help residential conveyancing firms on the different 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 CML handbook requirements for each bank, be it Virgin Money, Yorkshire Building Society or Chelsea BS. 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?
Leeds Building Society and Santander in common with many mortgage companies, instructions are such that where matrimonial homes act indemnity insurance is to be taken out:
- 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 registered proprietor or mortgage company. If the mortgagor will not be protected by the matrimonial homes act indemnity insurance policy, you must advise the mortgagor of this fact.
- your firm must approve the terms of the matrimonial homes act policy on behalf of the lender
- the matrimonial homes act indemnity insurance policy should be effected at no cost to the bank
- your practice must provide a copy of the matrimonial homes act indemnity insurance to the mortgagor and explain to the borrower why the matrimonial homes act indemnity insurance policy was effected and that additional insurance could be necessary if there is supplemental borrowing against the mortgaged property
- your practice is required to disclose to the insurer all relevant information which you have gathered
- your firm must explain to the mortgagor that the borrower is obliged to adhere to any conditions of the matrimonial homes act indemnity insurance policy and that the mortgagor should notify the lender of any notice or potential claim in respect of the insurance
- the minimum level of cover for the policy must satisfy the requirements for the mortgage company (see UK Finance Lenders’ Handbook Part 2 )
- the matrimonial homes act indemnity insurance policy should not incorporate terms that you recognise would invalidate or compromise the interests of the lender
| 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. |
| April Mortgages | An amount at least equal to the mortgage advance. |
| Bank of Ireland Mortgages | The limit of indemnity must be an amount not less than the market value of the property. |
| Bank of Scotland | Not less than mortgage advance plus 10% |
| 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. |
| Clydesdale Bank | Open market value of property. |
| Cynergy Bank | The market value of the property. |
| First Direct | The value of the insurance must be for at least the full value of the property |
| Legal & General Home Finance | The policy should be for the full market value of the property and indexed linked. The policy must be for our benefit, and for the benefit of the borrower where available. The policy must benefit all successors and assigns. |
| Market Harborough Building Society | Purchase price or valuation - higher of the two |
| 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. |
| Monmouthshire Building Society | The higher of the purchase price or valuation. For remortgages, the value of the advance. |
| 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. |
| Paragon Residential | An amount at least equal to the stated value of the Property. |
| Reliance Bank | \xA31,000,000.00 |
| Scottish Building Society | Amount of mortgage plus 25%. |
| The Mortgage Works | The full purchase price/value of the property whichever is higher |
| RBS - Virgin One | An amount equal to the value of the property. |
| Together Personal Finance | Minimum of £2,000,000.00 per claim. |
General Matrimonial Homes Act indemnity insurance points to consider
The full terms, conditions and exclusions for matrimonial homes act indemnity insurance are shown in the policy document. Property lawyers are obliged to 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 is essential check the document to determine that it is correct. The duration of this non-investment insurance contract is in perpetuity unless the policy says something to the contrary. Adequacy in this regard should be checked.Matrimonial Homes Act indemnity insurance: Significant features 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- All other costs and expenses incurred by the Insured with the written consent of the relevant insurance company
- Liability for damages or compensation incurred in any proceedings in respect of the risks specified in the matrimonial homes act indemnity insurance, as well as solicitors charges.
- All sums paid with consent in writing from the insurance company to liberate the land from the risks specified in the matrimonial homes act policy.
- 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.
- Market value reduction due to the successful enforcement of the risks specified in the matrimonial homes act policy.
- The cost of works (including professional fees) for the purpose of the development started, before the commencement of 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.
As is the case with all conventional insurance, all material information needs to be disclosed to the insurance company at the outset and throughout the policy term, otherwise the matrimonial homes act policy will be invalidated.
Additional considerations for matrimonial homes act indemnity insurance
Matrimonial Homes Act insurance may satisfy lenders such as Bank of Scotland or HSBC 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 mortgage company approved 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 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.