HIPS Indemnity for out of date searches

maxsti15

Hi there

We are in the process of buying a new house and the HIPS searches undertaken by our seller have gone out of date. Our conveyancer has quoted £145.25 for indemnity insurance which I think sounds a lot. Can anyone tell me if this is expensive. I have seen people on here quoting £30 but I understand that the cost is in relation to the value of the property. The property is valued at £355k.

I phoned one large insurer and was told that we aren't able to initiate this sort of insurance ourselves and have to go via a solicitor. At this stage we aren't sure if our lender will even accept the insurance or will require new searches.

In some ways it might be cheaper to have the searches done again as I have been quoted £85 by our local authority to redo that search - not sure of cost on water search. We are not particularly in a rush to move and there is no chain.

Anyway, I'm really just looking for some advice about the insurance costs and whether it is best to undertake our own searches instead.

Thanks, Jo

MissMotivation

If time is not an issue to you then I would pay to have new searches. Not all Lenders will accept Local Search Indemnity Insurance and even if they do it's more expensive than the actual searches.

maxsti15

Thanks I'm just unsure of the cost of another drainage search as well - might be worth contacting our water authority?

timmyt

your solicitor needs to be happy as he has a duty to your lender.

personally - as a conveyancing solicitor myself - I would redo the local search, but tell the lawyer that there is no reason to redo the water search if it already shows main conenction as what would have changed!

sold1234

Hi am new to the forum but have been reading on here alot. Would just like some advice as i have sold my house and just wondering once the surveyor has been how long is the process?

Thanks sold1234
And i do not no if i have posted right....

Richard_Webster

Hi am new to the forum but have been reading on here alot. Would just like some advice as i have sold my house and just wondering once the surveyor has been how long is the process?

Thanks sold1234
And i do not no if i have posted right....

You need to start a new thread because this is in the middle of an existing one that is not about your query.

Richard_Webster

I could get a search validation policy for £355,000 for £32. That's a lot cheaper than redoing the search (even in Portsmouth where local searches cost £50).

This "extends" the search life to 12 months in that if anything would have shown on a search carried out before completion and not later than 12 months after the original search that significantly reduces the value of the property then the insurer will pay out.

Not all lenders will accept them and it is a matter for a solicitor to advise his client as to what should be done in this respect. Opinions differ.

maxsti15

Thanks for diverting the highjacker! And for your info!
I'm not sure where I can go to get the policy even if our lender accepts this. I have the feeling you can't mention company names on here but I tried one big insurance brand and they said that we had to get the insurance via a solicitor. How can I find out where to get the policy ourselves?

Thanks

MissMotivation

AFAIK you cannot get indemnity insurance yourself.....it has to be done via the Solicitor. Give you Lender a call to see if they accept it before you decide which was to go.

Richard_Webster

Thanks for diverting the highjacker! And for your info!
I'm not sure where I can go to get the policy even if our lender accepts this. I have the feeling you can't mention company names on here but I tried one big insurance brand and they said that we had to get the insurance via a solicitor. How can I find out where to get the policy ourselves?

Thanks

Not sure if you phone your lender they would know what you are on about because this is a technical thing that comes from their head office legal department. Your solicitor should be able to tell you whether the lender will accept it because it will be down in their Part 2 of the CML Handbook. Solicitor will have to arrange policy.

Who is you lender?