Restrictive covenant indemnity insurance - do I need it?

Leslie_from_Pinner

We are selling our house and the buyers' solicitors have informed our solicitors that the Land Registry copies of restrictive covenants from 1909 and later are illegible. On approaching the LR for fresh copies, our solicitor was informed that the original documents have been destroyed and they regret that the copies are illegible. On this basis, the buyer's solicitors are asking for us to purchase indemnity insurance. Our solicitor informs us that the cost will be £995 plus tax (the property is valued at seven figures).

I have gone back to the solicitors who acted for us on the purchase of our property as I did not recollect any such issue arising in 1995. Unfortunately, the file is no longer held by them so it is impossible to establish if legible copies of the covenants were available at that time.

My questions are:

- is the cost reasonable? I have seen quotes on this site for less than £200 for admittedly a smaller property.


- is it normal for the seller to bear the full cost, or would it be reasonable for us to ask the buyer to split the cost with us? They only need it for their lender.

- do we have a claim against the Land Registry (or can we insist that they pay for the insurance)?

I would be much obliged for informed comment.

Thanks!

jonesMUFCforever

If I was the buyer - would I go through with the purchase if the insurance was not in place - NO
Would I pay for the insurance on top of giving you a seven figure amount of money - NO

Back to you I think.