Indemnity Insurance for a Boundary Dispute

ab7167

We are half way through buying a house, and a boundary dispute has turned up with the current next door neighbour. We are trying to get more details of this and how it was settled, but it would appear that no formal settlement was ever made - i.e. they just agreed to disagree and nothing was ever set down in writing as to the outcome. This was back in 2000, but the extension that caused the original dispute was constructed in 1972. Dispute did not begin until 1999 (and the neighbour who started the dispute was not the neighbour at the time the extension (ours to be) was allegedly built 400mm too far over to one side) Therfore the original neighbours had no issue with the location of the extension, it was a subsequent purchaser who was (in my opinion) chancing their arm, or had been badly advised.

We are hoping that the house sale will not set everything off again with the next door neighbour, but are aware than any insurer we go to for buildings/contents/legal cover will almost certainly not insure us for an existing dispute.

Is it possible to buy indemnity insurance for this kind of situation?

jassco

Surely your solicitor could answer this for you? That's why you're paying them afterall

chappers

I would be very wary of this. I would think that it would not be possible to take out indemnity for something that is known to be wrong.
Whilst you and the current neighbours may be happy with the situation , that doesn't mean that future neighbours or purchasers of both houses will be, unless this can be cleared up quickly i would steer well clear.

ab7167

well, more information has turned up and we have decided to pull out of the purchase. sol said we had no chance of completing by the date we originally wanted, and said that there is every chance it wouldn't be sorted before our mortgage offer runs out in June.

I understand the vendors must be devastated, as effectively their house is now unsellable until this is sorted - the complainant (current next door neighbour) has reopened the dispute this week and is demanding tens' of thousands of pounds to settle the matter.

We told our vendor that we may consider going ahead if they sort it, but actually I think I wouldn't be happy living there anyway with that neighbour - would always be wondering what would come up next.

And you are right, we knew about the dispute, so it is completely uninsureable.

Onwards to rightmove before I become homeless, as we are still going ahead with our sale as planned...

Hippychick

I think you have done the right thing, I feel for the vendors having this happen, but certainly wouldn't want to live next to a neighbour like that!

Good luck with the house hunt.