HSBC not accepting indemnity insurance

swedstar

We are in the process of buying a flat (leasehold) and to our disappointment our lender HSBC hasn't accepted the lease due to a number of defects.

They pointed out the following issues with the lease:
* There is no covenant by the landlord to keep the foundation in good repair and condition
* the insurance covenant does not comply with the requirements of the CML handbook (sorry haven't got further explanation on this)
* No right of shelter is granted
* There is no fire risk assessment nor asbestos survey of the common parts.

My solicitor was very surprised that HSBC didn't accept an indemnity (defective title insurance) to cover for these things. After checking the CML handbook, it seems that HSBC do accept indemnity insurance for various reasons. Unfortunately I'm not technical enough to understand the details in this handbook.

My question really is whether I should take this as a hint and stay away from this property, or go down the route of finding another lender which might accept these deficiencies with an indemnity insurance in place. My solicitor and real estate agent basically blame HSBC for being too restrictive.