Lender conveyancing panel requirements re Missing Deeds Indemnity Insurance
Natwest and Coventry BS, as with the majority of banks, set their own requirements when it comes to missing deeds indemnity insurance. The content herein aims to help property law solicitors on the different mortgage company conveyancing panel where the title for the the property to be mortgaged includes missing deeds. Solicitors should still check the CML handbook requirements for each bank, for example Halifax, Godiva Mortgages 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?
Yorkshire Bank Home Loans and Virgin Money in common with the majority of banks, requirements are that where missing deeds indemnity insurance is effected:
- the missing deeds indemnity insurance policy should always be for the benefit of the mortgage company and, wherever possible, for the benefit of the borrower and any future owner or mortgagee. Where the borrower will not be protected by the missing deeds indemnity insurance policy, the mortgagor must be informed accordingly.
- your firm must approve the terms of the missing deeds policy on behalf of the bank
- the limit of indemnity must satisfy the requirements for the bank (See Part II Handbook requirements )
- you is required to reveal to the insurer all relevant information which you have obtained
- the missing deeds indemnity insurance policy must not contain terms which you recognise would void or compromise the interests of the bank
- your practice must point out to the mortgagor that the borrower must adhere to any conditions of the missing deeds indemnity insurance policy and that the mortgagor should notify the bank of any notice or potential claim in relation to the insurance
- your practice must supply a duplicate of the missing deeds indemnity insurance to the mortgagor and explain to the mortgagor why the missing deeds indemnity insurance policy was effected and that a further policy might be necessary if there is further borrowing against the security of the property
- the missing deeds indemnity insurance policy must be effected without charge to the bank
| 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. |
| Adam & Company International | The open market value of the property according to the valuation report. |
| Birmingham Midshires | An amount equal to at least 110% of the purchase price or value, whichever is higher. |
| Coventry Building Society | Minimum of the value of the property. |
| Halifax Loans | An amount at least equal to the mortgage advance. |
| Kent Reliance | An amount at least equal to 110% of the mortgage valuation. |
| 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. |
| Lloyds | The value of the property. |
| Lloyds | The value of the property. |
| ModaMortgages | An amount at least equal to 110% of the mortgage valuation. |
| Mortgage Agency Services | 110% of the purchase price or valuation, whichever is greater |
| 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. |
| National Westminster Bank | An amount equal to the value of the property. |
| Paratus | An amount equal to 110% of the valuation or purchase price - whichever is the greater. |
| Precise Mortgages | An amount at least equal to 110% of the mortgage valuation. |
| Principality Building Society | Full market value of the property is preferred but if this is not available we will accept the loan advance amount as minimum. You must approve the policy on our behalf. The estimated property value is stated in the Mortgage Offer in remortgage cases. Otherwise it will be stipulated in the Valuation. |
| Reliance Bank | \xA31,000,000.00 |
| Santander | The purchase price or (if lower) 110% of the mortgage advance. |
| Swansea Building Society | Purchase price or market valuation whichever is the higher |
| TSB | The value of the property |
Missing Deeds Contingency Insurance : Reflections
The full terms, conditions and exclusions for missing deeds indemnity insurance are identified in the policy paperwork. Conveyancing solicitors should point your non-lender client to the missing deeds indemnity insurance policy document. Missing Deeds Contingency insurance is designed 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 in order. The duration of this non-investment insurance agreement is in perpetuity unless otherwise stated in the missing deeds indemnity insurance policy. It is well worth checking that the time frame is correct.Missing Deeds indemnity insurance: Important features and benefits:
This policy would usually provide protection from financial loss that might arise in the event of a third party making a cliam in respect of the risks identified in the policy document. Missing Deeds indemnity insurance Policies should be checked for the following- The cost of works (including professional fees) for the purpose of the development begun, or contracted for, before the commencement of proceedings for the enforcement of the risks specified in the missing deeds insurance, to the extent that such costs are rendered abortive by court decision.
- The out of pocket expenses 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.
- All ancillary costs and expenses incurred by the Insured with consent in writing from the relevant insurer
- Money paid with the written consent of the insurance company to free the land from the risks specified in the missing deeds insurance.
- Reimbursement for compensation incurred in any action regarding the risks specified in the missing deeds insurance, including incurred costs and expenses.
- Market value reduction resulting from the successful enforcement of the risks specified in the missing deeds indemnity insurance.
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 missing deeds policy will be invalidated.
Additional considerations for missing deeds indemnity insurance
Bear in mind, that if a covenant is breached and changes have to be made, simply getting monetary compensation from missing deeds insurance may be adequate for your client. Information provided on this webpage is for general information for conveyancers and solicitors in England and Wales on the the mortgage company 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 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.