Lender conveyancing panel requirements re Missing Deeds Indemnity Insurance
Lloyds TSB and Birmingham Midshires, like many lenders, dictate their own requirements when it comes to missing deeds indemnity insurance. This page is designed to help residential conveyancing practitioners on the numerous bank conveyancing panel where the title to be charged incorporates missing deeds. Lawyers are advised to familiarise themselves with the CML handbook requirements for each mortgage company, whether it be Bank of Scotland, Nationwide or Halifax. The information on this page is not focused on missing deeds indemnity insurance requirements.
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Yorkshire Building Society and HSBC like the majority of banks, requirements are that where missing deeds indemnity insurance is effected:
- the missing deeds indemnity insurance policy should not incorporate terms that you recognise would invalidate or prejudice the interests of the bank
- the missing deeds indemnity insurance policy should always be for the benefit of the mortgage company and, if possible, for the benefit of the borrower and any subsequent registered proprietor or mortgage company. If the mortgagor will not be covered by the missing deeds indemnity insurance policy, you must advise the borrower of this fact.
- your firm must approve the terms of the missing deeds policy on behalf of the lender
- the missing deeds indemnity insurance policy should be effected at no cost to the lender
- you is obliged to reveal to the insurer all relevant information which you have obtained
- you is duty bound to 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 respect of the insurance
- your firm must supply a duplicate of the missing deeds indemnity insurance to the borrower and explain to the borrower why the missing deeds indemnity insurance policy was effected and that a further policy could be mandatory if there is supplemental borrowing against the mortgaged property
- the level of indemnity must meet the requirements for the mortgage company (See Part II Handbook requirements )
| Lender | Requirement |
|---|---|
| Bank of Ireland Mortgages | |
| Barclays plc | |
| Bluestone Mortgages | |
| Bradford & Bingley | |
| HSBC UK Bank | |
| Intelligent Finance | |
| Kensington Mortgage | |
| Keystone Property Finance | |
| Market Harborough Building Society | |
| Molo Finance Buy to Let | |
| Mortgage Agency Services | |
| Mortgage Express | |
| Nedbank | |
| New Street Mortgages | |
| Precise Mortgages | |
| Saffron Building Society | |
| Skipton Building Society | |
| RBS - Direct Line | |
| Vida Homeloans |
General Missing Deeds indemnity insurance points to consider
The full terms, conditions and exclusions for missing deeds indemnity insurance are identified in the policy document. Conveyancing solicitors are obliged to direct 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 is essential check any draft to determine that it is as it should be. The continuance of this non-investment insurance contract is in perpetuity unless otherwise stated in the missing deeds indemnity insurance policy. It is well worth checking that the time frame is correct.Important aspects and benefits of missing deeds indemnity insurance :
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 Policies should be checked for the following- Expenses for 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 missing deeds policy, to the extent that such costs are rendered abortive by court decision.
- All sums paid with consent in writing from the insurance company to free the property from the risks specified in the missing deeds insurance.
- Reimbursement for compensation incurred in any action regarding the risks specified in the missing deeds indemnity insurance, including fees of a legal nature.
- Diminution in value resulting from the successful enforcement of the risks specified in the missing deeds policy.
- All other costs and expenses incurred by the Insured with the written consent of the relevant insurer
- The out of pocket expenses 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.
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 be invalidated.
Missing Deeds Indemnity Insurance has limitations - Supplemental considerations
Missing Deeds insurance may satisfy lenders such as Virgin Money or Natwest 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. Information contained within 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 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 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.