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  • FIRST POST
    • Bnmtuning
    • By Bnmtuning 18th May 17, 2:25 PM
    • 1Posts
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    Bnmtuning
    Help regarding indemnity policy. DO I NEED ONE?
    • #1
    • 18th May 17, 2:25 PM
    Help regarding indemnity policy. DO I NEED ONE? 18th May 17 at 2:25 PM
    Hi everyone :-)

    I'm buying my first house and going through all the legal process with solicitors ect.

    Now the sale has come to standstill as the seller doesn't want to pay for an indemnity policy that the solicitors say we must have in place before the sale can proceed.

    Now it's regarding the side access that is between two house's. I use it to take my wheely bins out & so does the neighbour. But on my certificate which outlines what land I will own, this side access alley way isn't on that. Therefor I need an indemnity policy put in place incase any future owners next door decide they don't want me using it. I'm not aware at this point who owns the alley way but I assume it's the neighbour as their property is above it.

    I'm asking, do I need a policy in such a case? Any imformation will be greatly appreciated

    Thanks :-)
Page 1
    • lincroft1710
    • By lincroft1710 18th May 17, 2:34 PM
    • 9,912 Posts
    • 7,982 Thanks
    lincroft1710
    • #2
    • 18th May 17, 2:34 PM
    • #2
    • 18th May 17, 2:34 PM
    You may have a right of way over the side access, so you wouldn't need an indemnity. However your solicitor should have found that in the relevant documents.

    Do you know for definite that the side access belongs to the neighbour. You don't need an indemnity policy, but it may jeopardise your chances of a sale if you don't have one, especially if your buyer's mortgage provider is insisting on one.
    • cattie
    • By cattie 18th May 17, 2:36 PM
    • 7,739 Posts
    • 5,272 Thanks
    cattie
    • #3
    • 18th May 17, 2:36 PM
    • #3
    • 18th May 17, 2:36 PM
    To be honest, for the small cost of a policy compared to what you're paying for the property, I'd rather be safe than sorry & go ahead with the policy.

    I was in a similar situation when I bought my current home, something to do with chancel repair cover, which the vendors were not willing to pay for & rather than hold things up or lose out completely on purchasing the property, I chose to fork out myself for the cover.
    The bigger the bargain, the better I feel.

    I should mention that there's only one of me, don't confuse me with others of the same name.
    • Hoploz
    • By Hoploz 18th May 17, 6:10 PM
    • 3,529 Posts
    • 3,120 Thanks
    Hoploz
    • #4
    • 18th May 17, 6:10 PM
    • #4
    • 18th May 17, 6:10 PM
    If you decide the policy is necessary, bear in mind it can be paid for by either you or the seller. Sometimes the seller pays in order to get the deal sorted, but really it'll be you who might get any benefit from it.
    • Dollydaydreama
    • By Dollydaydreama 18th May 17, 8:45 PM
    • 11 Posts
    • 18 Thanks
    Dollydaydreama
    • #5
    • 18th May 17, 8:45 PM
    • #5
    • 18th May 17, 8:45 PM
    Have you thought about suggesting you pay 50% and they do the same?
    • martindow
    • By martindow 19th May 17, 11:06 AM
    • 7,261 Posts
    • 4,050 Thanks
    martindow
    • #6
    • 19th May 17, 11:06 AM
    • #6
    • 19th May 17, 11:06 AM
    What does this indemnity actually cover? If you buy it and then the neighbour, or someone they subsequently sell to, blocks the side access what happens?

    If a right of access has been established surely that needs to be clarified now. If there is no legal right of access and it just depends on the goodwill of the neighbour I don't see what benefit an indemnity gives (apart from reassuring the mortgage company).
    • lincroft1710
    • By lincroft1710 19th May 17, 2:30 PM
    • 9,912 Posts
    • 7,982 Thanks
    lincroft1710
    • #7
    • 19th May 17, 2:30 PM
    • #7
    • 19th May 17, 2:30 PM
    What does this indemnity actually cover? If you buy it and then the neighbour, or someone they subsequently sell to, blocks the side access what happens?

    If a right of access has been established surely that needs to be clarified now. If there is no legal right of access and it just depends on the goodwill of the neighbour I don't see what benefit an indemnity gives (apart from reassuring the mortgage company).
    Originally posted by martindow
    I asked myself the same question before posting at #2.

    Apparently an indemnity will provide compensation for any financial losses suffered in the event that the use of the right of way is challenged. This would include legal costs in defending the challenge and loss of value to the property in the event that the challenge is successful.
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