Indemnity Insurance of Missing Deeds Lender conveyancing instructions
Santander and RBS, as with many lenders, dictate their own requirements when it comes to missing deeds indemnity insurance. The purpose of this page to assist residential conveyancing practitioners on the different lender approved list of panel lawyers where the title for the the property to be mortgaged incorporates missing deeds. It is not a substitute for checking the CML handbook requirements for each bank, whether it be Halifax, Coventry BS or Godiva Mortgages. The content on this page is not focused on missing deeds indemnity insurance requirements.
Need help with missing deeds indemnity insurance from your lender?
Barclays and Nationwide like many mortgage companies, requirements are that where missing deeds indemnity insurance is effected:
- your firm must provide 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 additional insurance might be required if there is supplemental lending against the security of the property
- the missing deeds indemnity insurance policy must be in favor of the lender and, if possible, for the benefit of the mortgagor and any subsequent owner or lender. Where the mortgagor will not be covered by the missing deeds indemnity insurance policy, the mortgagor needs to be advised accordingly.
- your practice is duty bound to point out to the mortgagor that the borrower is obliged to comply with any conditions of the missing deeds indemnity insurance policy and that the borrower should notify the bank of any notice or potential claim in respect of the policy
- the level of indemnity must satisfy the requirements for the lender (see UK Finance Lenders’ Handbook Part 2 )
- the missing deeds indemnity insurance policy must not incorporate conditions which you recognise would invalidate or prejudice the interests of the mortgage company
- your practice must approve the terms of the missing deeds policy on behalf of the mortgage company
- you is obliged to reveal to the insurer all relevant information which you have acquired
- the missing deeds indemnity insurance policy should be effected without expense to the mortgage company
| Lender | Requirement |
|---|---|
| Adam & Company International | The open market value of the property according to the valuation report. |
| Bank of China | Cover to full value of the property or the Mortgage Advance, whichever is the higher. |
| Birmingham Bank | completions@birminghambank.com |
| Bluestone Mortgages | 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. |
| Capital Home Loans | An amount which is at least equal to the value or the purchase price of the property, whichever is the higher |
| Gen H | An amount equal to the value of the property unless specifically agreed in writing otherwise. |
| Habito | Higher of purchase price or valuation |
| Halifax Loans | An amount at least equal to the mortgage advance. |
| Hampden | The open market value of the property according to the valuation report. |
| Harpenden Building Society | 110% of 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 Equity Release | 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. |
| JPMorgan | 110% of principal sum. |
| 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. |
| M&S Bank | the value of the insurance must be for at least the full value of the property |
| 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. |
| Pepper Money | An amount equal to at least 110% of 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 and also the borrower(s). |
| Sainsbury's Bank | An amount equal to the higher of the value of the property or the purchase price. |
| Royal Bank of Scotland | An amount equal to the value of the property. |
| Vida Homeloans | It must be for a minimum of 110% of the purchase price or valuation, whichever is greater |
Missing Deeds Contingency Insurance : Reflections
The full terms, conditions and exclusions for missing deeds indemnity insurance are set out in the policy paperwork. Conveyancing solicitors are obliged to point the borrower to the missing deeds indemnity insurance policy itself. Missing Deeds Contingency insurance is devised 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 as it should be. The duration of this non-investment insurance contract is in perpetuity unless otherwise stated in the missing deeds indemnity insurance policy. Adequacy in this regard should be checked.Missing Deeds Contingency insurance: Important features and benefits:
The insurance will normally cover where someone claims to be entitled to the benefit of the specified risks, stated in the missing deeds indemnity insurance schedule. Missing Deeds indemnity insurance Cover normally includes- Liability for damages or compensation incurred in any proceedings concerning the risks specified in the missing deeds policy, as well as legal and associated costs.
- All ancillary costs and expenses incurred by the Insured with the written consent of the relevant insurance company
- Market value reduction resulting from the successful enforcement of the risks specified in the missing deeds indemnity insurance.
- The cost of works (including architects’ and surveyors’ 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 policy, to the extent that such costs are rendered abortive by court order.
- The out of pocket expenses 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.
- Money paid with consent in writing from the insurance company to liberate the property from 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.
Further considerations for missing deeds indemnity insurance
Missing Deeds Indemnity insurance isn’t a solution to all of the relevant problems. Content on this webpage is for general information for conveyancers and solicitors in England and Wales on the the bank 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 above information covers to properties in England and Wales.