Do Halifax accept indemnity insurance on their mortgages

dudleyas

Hi there

Buying a house, and my mortgage is with Halifax.

We've learned that some time ago (not known when) a non-supporting wall was removed, and separately a new window installed, but possibly without building regs (it can't be provided).

We're happy with it structurally, but solicitor talking about asking seller for an indemnity policy, but gave an element of doubt as to whether Halifax will accept one in lieu of building regs certificate, and now she's gone on holiday for a few days leaving it in limbo.

Does anyone know if Halifax will accept an indemnity policy in the absence of building regs certificates? I'd just like to get an idea in the meantime as to whether it's likely to go ahead.

Thanks

D

Goldiegirl

If this issue is flagged up by the solicitor, the Halifax would probably seek the valuers opinion to see if the valuation is adversly affected.

If the valuer is not too bothered, and the solicitor is recommending the indemnity insurance, then in all probability they'd agree to proceed.

dudleyas

Thanks for the reply. I'm pretty sure the valuer will have picked up that it used to be two rooms converted to one as there's evidence in the layout and the vendor told us about it.

To be honest the doubt seemed more about Halifax as a lender accepting indemnity insurance in general. I've looked at their cml guidance and its unclear, just infers that it needs to be referred to them.

dudleyas

Ps, the conversion was prior to the vendors ownership, but it wasn't apparently an issue for their mortgage 14 yrs ago. The window was about 7ish yrs ago but I think was done by a 'friend in the business'.

Richard_Webster

If the work is 7/14 years old then probably the Halifax will accept it but the solicitor has to protect his back by writing them about it.

If I was writing, I would put in a line to the effect that "I can't give you advice as I am not a surveyor, but your surveyor may think that if there are no signs of a problem, after this length of time, there would be unlikely to be an issue...."

In fact of course the indemnity policy is a pure sop, and doesn't really help the lender at all, as it only protects against enforcement action by the Council which is extremely unlikely in this sort of case. However lenders seem to be comforted by them so it is safer for a solicitor to offer to get one!

dudleyas

Thanks Richard, I'll wait and see what she says when back.

Goldiegirl

Richard_Webster wrote: »

If the work is 7/14 years old then probably the Halifax will accept it but the solicitor has to protect his back by writing them about it.

If I was writing, I would put in a line to the effect that "I can't give you advice as I am not a surveyor, but your surveyor may think that if there are no signs of a problem, after this length of time, there would be unlikely to be an issue...."

In fact of course the indemnity policy is a pure sop, and doesn't really help the lender at all, as it only protects against enforcement action by the Council which is extremely unlikely in this sort of case. However lenders seem to be comforted by them so it is safer for a solicitor to offer to get one!

When I worked for a lender, we generally told the solicitor to proceed in the way he felt was most appropriate ....... We always felt the indemnity policy seemed to comfort the solicitor!

Richard_Webster

Quote:
Originally Posted by Richard Webster
If the work is 7/14 years old then probably the Halifax will accept it but the solicitor has to protect his back by writing them about it.

If I was writing, I would put in a line to the effect that "I can't give you advice as I am not a surveyor, but your surveyor may think that if there are no signs of a problem, after this length of time, there would be unlikely to be an issue...."

In fact of course the indemnity policy is a pure sop, and doesn't really help the lender at all, as it only protects against enforcement action by the Council which is extremely unlikely in this sort of case. However lenders seem to be comforted by them so it is safer for a solicitor to offer to get one!

When I worked for a lender, we generally told the solicitor to proceed in the way he felt was most appropriate ....... We always felt the indemnity policy seemed to comfort the solicitor!

Interesting! I have come across that kind of response and then I've told my clients not to bother but warned them they may have to pay for a policy when they sell!