Mortgage Company conveyancing panel requirements re Missing Deeds Indemnity Insurance
Chelsea BS and Barclays, as with most lenders, set 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 solicitors panel where the title for the the property to be mortgaged contains missing deeds. It is not a alternative for checking the CML handbook requirements for each mortgage company, be it Godiva Mortgages, Barnsley BS or Accord. 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?
Virgin Money and Halifax in common with many mortgage companies, requirements are that where missing deeds indemnity insurance is to be put on risk:
- the level of indemnity must meet the requirements for the bank (See Part II Handbook requirements )
- your firm must explain to the borrower 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
- your firm is required to disclose to the insurer all relevant information which you have gathered
- the missing deeds indemnity insurance policy needs to be in favor of the mortgage company and, if possible, for the benefit of the mortgagor and any future owner or lender. Where the mortgagor will not be protected by the missing deeds indemnity insurance policy, the borrower needs to be informed accordingly.
- the missing deeds indemnity insurance policy should be placed on risk without cost to the bank
- you must send 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 additional insurance may be necessary if there is additional borrowing against the mortgaged property
- the missing deeds indemnity insurance policy should not contain conditions which you are aware would void or compromise the interests of the mortgage company
- your firm must approve the terms of the missing deeds policy on behalf of the bank
| Lender | Requirement |
|---|---|
| Ahli United Bank | An amount equal to the value of the Mortgaged Property |
| Atom Bank | At least the open market value of the property according to the valuation report. |
| Coutts Finance | The open market value of the property according to the valuation report. |
| Ecology Building Society | An amount equal to at least 110% of the mortgage advance |
| Furness Building Society | Property valuation or purchase price, whichever the greater. |
| GE Money | GE Money Home Lending has withdrawn from the UK mortgage market. |
| Godiva Mortgages | Minimum of the value of the property. |
| Halifax Loans | An amount at least equal to the mortgage advance. |
| Harpenden Building Society | 110% of mortgage advance |
| Intelligent Finance | An amount at least equal to the total of the initial mortgage advance plus any pre-agreed reserve. These amounts will be shown in the mortgage offer. |
| Leeds Building Society | An amount at least equal to the amount of the mortgage advance plus 10%. Any indemnity insurance policy must protect the borrowers, any successor in title and any Mortgagee. |
| M&S Bank | the value of the insurance must be for at least the full value of the property |
| ModaMortgages | An amount at least equal to 110% of the mortgage valuation. |
| Paragon Mortgages Ltd | An amount at least equal to the stated value of the Property. |
| 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). |
| TSB | The value of the property |
| The Mortgage Lender | An amount at least equal to the mortgage advance. |
| Tipton Coseley Building Society | Minimum of mortgage advance. |
| Topaz Finance | Valuation or purchase price, whichever is higher. The policy must always benefit the borrower and any subsequent owner or mortgagee - the policy must be index linked. |
| 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 extent of the terms for missing deeds indemnity insurance are explained in the policy document. Property lawyers should point the borrower to the missing deeds indemnity insurance policy document. Missing Deeds Contingency insurance is designed to afford indemnity in respect of the risks set out in the policy schedule - so it’s important to check any draft to ensure it is as it should be. The continuance of this non-investment insurance agreement is in perpetuity unless otherwise stated in the missing deeds indemnity insurance policy. Again, please check that this is as you expected.Significant 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 Cover normally includes- Loss in market value due to the successful enforcement of the risks specified in the missing deeds insurance.
- All other costs and expenses incurred by the Insured with consent in writing from the relevant insurance company
- Money paid with consent in writing from the insurance company to free the land from the risks specified in the missing deeds indemnity insurance.
- Reimbursement for compensation incurred in any proceedings regarding the risks specified in the missing deeds insurance, as well as legal and associated costs.
- The cost of works (including architects’ and surveyors’ fees) for the purpose of the development commenced, prior to 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.
- The cost 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.
You also need to be sure that the answers on the application form are correct. However remote the likelihood of a claim on the mortgage company insurance policy might be you can certain that the insurer will check the details on any proposal form very carefully prior to any claim being met.
Additional considerations for missing deeds indemnity insurance
Missing Deeds insurance may satisfy lenders such as Lloyds TSB 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 bank conveyancing 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 is in relation to properties in England and Wales.