Search Delay indemnity policy- any use?

gofish

Hi,

I am buying a property in south London and the council there is taking almost 2.5 months to turnaround the searches. They had staffing issues which were left unresolved and now created a huge backlog. I am concerned this could potentially affect our purchase and seller / estate agent might become restless.

I read about Search Delay indemnity Policy that it could help in purchase if the searches are delayed. Has anyone ever used this insurance and what exactly does it cover?

Many Thanks

gofish

93 views and no reply!

Annie1960

OK, I'll reply.

Never heard of it.

G_M

gofish wrote: »

Hi,

I am buying a property in south London and the council there is taking almost 2.5 months to turnaround the searches. They had staffing issues which were left unresolved and now created a huge backlog. I am concerned this could potentially affect our purchase and seller / estate agent might become restless.

I read about Search Delay indemnity Policy that it could help in purchase if the searches are delayed. Has anyone ever used this insurance and what exactly does it cover?

Many Thanks

What do you expect this policy to indemnify you against?

OK - suppose it turns out the road outside has not been adopted and you as property-owner have to pay to maintain it. Such a policy might cover the cost (though I'd be surprised if you can find a policy for this).

What if it transpires that a motorway (or similar) is due to be build through the garden next year? Your policy will not stop that happening!

gofish

Well, I never heard of it as well until I came into this situation and then read on the internet that the policy covers the unforeseen financial loss for purchaser and his lender if one has to proceed with purchase without waiting for the delayed search report. However, I am not sure how effective it is so put it as a question on this forum to see if anyone else came across this product.


But it seems no one else here has used this product and its quite rare.

davidmcn

G_M wrote: »

What do you expect this policy to indemnify you against?

OK - suppose it turns out the road outside has not been adopted and you as property-owner have to pay to maintain it. Such a policy might cover the cost (though I'd be surprised if you can find a policy for this).

What if it transpires that a motorway (or similar) is due to be build through the garden next year? Your policy will not stop that happening!

It wouldn't stop the practical issues, but it would cover for the drop in value of the property. You also have the option of getting an indemnity policy and not even instructing a search.

If searches are really taking this long (and no private search companies have entered the market, as they have in Scotland) then it seems a reasonable option.

tigsly

If the council is taking 2.5 months to turn round searches - the next person would be at the bottom of the pile - so take at least 2.5 months - from when you pull out and they are found.. you are therefore a far better bet..

Tell the EA - there is nothing you can do - you are still keen to buy - but you must wait for seraches..

We were in a similar position the website here said it took 12 days to turn around searches - but the searches - took nearly 4 weeks.. in the end it made no odds- but it was tense!

Good luck

gofish

tigsly wrote: »

If the council is taking 2.5 months to turn round searches - the next person would be at the bottom of the pile - so take at least 2.5 months - from when you pull out and they are found.. you are therefore a far better bet..

Tell the EA - there is nothing you can do - you are still keen to buy - but you must wait for seraches..

We were in a similar position the website here said it took 12 days to turn around searches - but the searches - took nearly 4 weeks.. in the end it made no odds- but it was tense!

Good luck

Thanks for the reply