Indemnity insurance for right of way

homebuyer2011

Can anyone advice on an indemnity insurance over a right of way of a terraced house's back access. There is a pathway right at the end of the end of terrace house neighbour that allows the current owner of the terraced house to have rear access. The main access to the house is at the front. The rear access has been used by the current owner uninterrupted for the last 7 years. Unfortunatelly there is no deed in the title stating that he has the right to use the rear access. In the event of neighbour's deciding to obstruct access via the end of their garden, the terraced house owner would have no right to contest that. I am trying to buy the terraced house.

My solicitor has suggested an indemnity insurance or a new deed to be entered into the title. The above situation has been brought up to the neighbour's attention under my solicitor's advice. Now Im being informed that no insurance company will take the risk and sell me an indemnity insurance since these facts have been brought up to the neighbour's attention and the only way forward is to enter into a new deed.

Can anyone advice on this? I would like an indemnity insurance over a deed due to the length of time a new deed to be entered takes (4-6 weeks).

Many thanks.

Jebrelli

As I understand it a policy can't be taken out if the party you're insuring against knows about the defect/problem, as the insurance is invalid if third parties know it exists.

timmyt

if the person able to take action knows of the defect as a result of your actions then no, you cannot take out insurance - so a deed is the only way forward

BY worryingly you say - The above situation has been brought up to the neighbour's attention under my solicitor's advice - so you as Buyer have prejudiced the seller's position by alering the neighbour !! Di you get the seller's consent, and did your lawyer tell you that by doing so you could not then get insurance.

If the neighbour is nice enough and they own the acess, then ask for a deed, but the seller should be sorting all this and at their expense.

homebuyer2011

Thanks Timmy, quite right, I have asked my solicitor for his advice prior to talking to the neighbour as well as the estate agent on behalf of the seller. They both agreed and my solicitor adviced me to go ahead with it and told me nothing of the possibility of invalidating the insurance should I have wanted to go down this route. So I should write to my solicitor about his lack of informed adviced on the matter. The neighbour seemed nice and I think the seller will be able to obtain the new deed, only that the paper work requires 4-6 week? I wonder how some people can get away with these incredibly long deadlines.

timmyt

homebuyer2011 wrote: »

Thanks Timmy, quite right, I have asked my solicitor for his advice prior to talking to the neighbour as well as the estate agent on behalf of the seller. They both agreed and my solicitor adviced me to go ahead with it and told me nothing of the possibility of invalidating the insurance should I have wanted to go down this route. So I should write to my solicitor about his lack of informed adviced on the matter. The neighbour seemed nice and I think the seller will be able to obtain the new deed, only that the paper work requires 4-6 week? I wonder how some people can get away with these incredibly long deadlines.

a deed is best so lawyer has not done wrong really, and nthing to be gained by complaining at this stage. the neighbour may need to consult their own mortgage company hence the delay. just wait it out or do an exchnage conditional on this deed being in place...unless you are also selling or the seller to you is also buying in which case the chain won't agree a conditional exchnage