Mortgage Company conveyancing panel requirements re Matrimonial Homes Act Indemnity Insurance
Chelsea BS and Halifax, in common with many banks, set their own requirements when it comes to matrimonial homes act indemnity insurance. The purpose of this page to assist property law lawyers on the different lender conveyancing panel where the title to be charged contains matrimonial homes act. Lawyers are advised to familiarise themselves with the CML handbook requirements for each bank, be it Bank of Scotland, RBS or Leeds Building Society. 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?
Yorkshire Building Society and Barnsley BS as with the majority of banks, requirements are that where matrimonial homes act indemnity insurance is effected:
- you is obliged to reveal to the insurer all relevant information which you have obtained
- your practice is duty bound to point out to the borrower that the borrower must adhere to any conditions of the matrimonial homes act indemnity insurance policy and that the mortgagor should notify the bank of any notice or potential claim in relation to the insurance
- your firm must approve the terms of the matrimonial homes act policy on behalf of the lender
- the limit of indemnity must meet the requirements for the bank (see UK Finance Lenders’ Handbook Part 2 )
- the matrimonial homes act indemnity insurance policy must not contain conditions that you are aware would void or compromise the interests of the bank
- the matrimonial homes act indemnity insurance policy should be effected without expense to the lender
- the matrimonial homes act indemnity insurance policy should always be in favor of the bank and, wherever possible, for the benefit of the mortgagor and any next owner or lender. If the borrower will not be protected by the matrimonial homes act indemnity insurance policy, the borrower needs to be informed accordingly.
- you must send 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 additional insurance might be necessary if there is additional borrowing against the mortgaged property
| Lender | Requirement |
|---|---|
| Ahli United Bank | |
| Allied Irish Bank | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Bank | |
| Coutts Finance | |
| Kensington Mortgage | |
| Keystone Property Finance | |
| Landbay Partners | |
| Lloyds Bank Private Banking | |
| National Counties Building Society | |
| Nedbank | |
| New Street Mortgages | |
| Paragon Residential | |
| Sainsbury's Bank | |
| Tandem Bank | |
| The Mortgage Business | |
| RBS - Direct Line | |
| Together Personal Finance | |
| Virgin |
General Matrimonial Homes Act indemnity insurance points to consider
The extent of the terms for matrimonial homes act indemnity insurance are explained in the policy paperwork. Conveyancing solicitors are obliged to direct the borrower to the matrimonial homes act indemnity insurance policy itself. The intention of matrimonial homes act indemnity insurance is to grant indemnity in respect of the risks set out in the policy schedule - so it is essential check any draft to determine that it is correct. The lifetime of this non-investment insurance agreement is in perpetuity unless the policy says something to the contrary. It is well worth checking that the time frame is correct.Matrimonial Homes Act Contingency insurance: Important characteristics and benefits:
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. Matrimonial Homes Act indemnity insurance Policies are likely to cover the following- The cost 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.
- Reimbursement for compensation incurred in any proceedings concerning 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 the written consent of the relevant insurer
- Market value reduction resulting from the successful enforcement of the risks specified in the matrimonial homes act indemnity insurance.
- Expenses for works (including professional fees) for the purpose of the development commenced, prior to proceedings for the enforcement of the risks specified in the matrimonial homes act policy, to the extent that such costs are rendered abortive by court order.
- All sums paid with the written consent of the insurance company to liberate the property from the risks specified in the matrimonial homes act policy.
Due diligence should extend to checking that the answers on the application form are accurate. Regardless of how remote a claim on the bank insurance policy might be you can certain that the insurer will check the details on any proposal form thoroughly before any claim is admitted.
Matrimonial Homes Act Indemnity Insurance has limitations - Supplemental 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 contained within this webpage is for general information for Regulated law firms in England and Wales on the the mortgage company 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 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.