Home Insurance - am I mortgaged or owned outright?

sophiexuan

Small question for the MSE experts.

My husband and I have bought a house with a loan from my father, rather than a traditional mortgage. We have a legal agreement with him, which is like a mortgage but technically the house was paid for "in cash"

When I'm looking for quotes for buildings and contents insurance the only options open to me are that the house is "Owned outright" or "Mortgaged"

Which one should I choose?

Thanks

System

sophiexuan wrote: »

Small question for the MSE experts.

My husband and I have bought a house with a loan from my father, rather than a traditional mortgage. We have a legal agreement with him, which is like a mortgage but technically the house was paid for "in cash"

When I'm looking for quotes for buildings and contents insurance the only options open to me are that the house is "Owned outright" or "Mortgaged"

Which one should I choose?

Thanks

Is your father shown / listed on the Land registration for the property, that is what shows who has an interest in the property and I assume is the main legal info that would be checked.

However, I do not know what the legal position would be, it may depend on how your "legal agreement" is written.

zzzLazyDaisy

The first thing to check is whether your father is shown on the charges register at the land registry as having an interest in the house. You can get this online at the land registry website, but you may have to wait until Monday.

If not, then this is a private unsecured loan, and you own the house outright.

If he is shown, then you would need to ask the question of your solicitor, as it would depend on how the legal agreement is written.

kingstreet

I would imagine the question is asked to give you the opportunity to have a lender's interest noted on the policy. As this is unlikely to be needed in your circumstances, you should be able to safely answer "no".