Missing Deeds Indemnity Insurance Mortgage Company conveyancing requirements
RBS and Leeds Building Society, as with the majority of banks, dictate their own specific instructions when it comes to missing deeds indemnity insurance. The purpose of this page to assist conveyancing practitioners on the different lender conveyancing panel where the title for the the property to be mortgaged contains missing deeds. Lawyers are advised to familiarise themselves with the Council of Mortgage Lenders’ handbook requirements for each lender, for example Nationwide, Halifax or Chelsea BS. The content on this page Is not to be read as missing deeds indemnity insurance advice.
Need help with missing deeds indemnity insurance from your lender?
Barclays and Skipton in common with many mortgage companies, instructions are such that where missing deeds indemnity insurance is to be put on risk:
- the missing deeds indemnity insurance policy should be effected at no expense to the lender
- your firm are responsible for approving the terms of the missing deeds policy on behalf of the bank
- your firm must point out to the mortgagor that the borrower will need to comply with any conditions of the missing deeds indemnity insurance policy and that the borrower should notify the mortgage company of any notice or potential claim in relation to the policy
- your firm must disclose to the insurer all relevant information which you have obtained
- the missing deeds indemnity insurance policy must be for the benefit of the bank and, wherever possible, for the benefit of the borrower and any future owner or bank. Where the borrower will not be protected by the missing deeds indemnity insurance policy, the mortgagor should be advised accordingly.
- your firm must send a duplicate of the missing deeds indemnity insurance to the mortgagor and explain to the borrower why the missing deeds indemnity insurance policy was effected and that a further policy may be necessary if there is additional borrowing against the mortgaged property
- the limit of indemnity must satisfy the requirements for the lender (See Part II Handbook requirements )
- the missing deeds indemnity insurance policy should not incorporate terms that you are aware would void or compromise the interests of the lender
| Lender | Requirement |
|---|---|
| Adam & Company | The open market value of the property according to the valuation report. |
| Bank of Scotland Private | [This lender has not published an answer to this question. Please contact the lender.]
|
| 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. |
| Coutts & Co | The open market value of the property according to the valuation report. |
| 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. |
| 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 |
| Lloyds | The value of the property. |
| National Westminster Bank | An amount equal to the value of the property. |
| Scottish Building Society | Amount of mortgage plus 25%. |
| Secure Trust Bank | An amount at least equal to the market value. 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). |
| State Bank of India UK | The purchase price or value of the property, whichever is the higher. |
| RBS - Direct Line One | An amount equal to the value of the property. |
| Tipton Coseley Building Society | Minimum of mortgage advance. |
| Together Personal Finance | Minimum of £2,000,000.00 per claim. |
| Whistletree | The value of the property |
| Yorkshire Bank | Open market value of property. |
| Yorkshire 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. |
General Missing Deeds indemnity insurance points to consider
The extent of the terms for missing deeds indemnity insurance are set out in the policy document. Conveyancing solicitors are obliged to point your non-lender client to the missing deeds indemnity insurance policy itself. Missing Deeds indemnity insurance is designed 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 contract is in perpetuity unless the policy says something to the contrary. Adequacy in this regard should be checked.Missing Deeds Contingency insurance: Important features 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. Missing Deeds indemnity insurance Policies are likely to cover the following- All sums paid with the written consent of the insurance company to free the land from the risks specified in the missing deeds indemnity insurance.
- The cost 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.
- All ancillary costs and expenses incurred by the Insured with the written consent of the relevant insurer
- Loss in market value due to the successful enforcement of the risks specified in the missing deeds policy.
- Reimbursement for compensation incurred in any action regarding the risks specified in the missing deeds policy, as well as solicitors charges.
- 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 missing deeds indemnity insurance, to the extent that such costs are rendered abortive by court decision.
As with any insurance policy, all material information needs to be disclosed to the insurance company at the outset and throughout the policy term, otherwise the missing deeds policy will not be valid.
Missing Deeds Indemnity Insurance has limitations - Supplemental considerations
Missing Deeds insurance may satisfy lenders such as HSBC or Barnsley BS 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 lender solicitor panel, it does not constitute advice for members of the public who should contact their lawyer for advice relating to the mortgage company 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 missing deeds 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 covers to properties in England and Wales.