Is no sale, no fee essential for conveyancing?

rosie383

I wonder how many people actually do benefit from a policy such as that. The 6 month period- is that for problems which may start within that time?

stator

You have to take the policy out within 7 days of your mortgage application or conveyencing, whichever is sooner. It then covers you for 180 days after you take out the policy if the sale falls through for one of the specific reasons:

What is Covered?
The insurer will pay your conveyancing costs, mortgage arrangement fees, lenders fees and survey fees incurred by you and subject to the limit of indemnity in the event of the following:

• the property is withdrawn from sale by the vendor for reasons beyond your control;
• the vendor receives and accepts an offer which is at least £1,000 greater than the offer they have accepted from you;
• a local authority search highlights that the property is subject of a compulsory purchase order;
• the vendor is not legally entitled to sell you the property;
• you or the person purchasing the property with you, die, are made redundant or are relocated, and you are unable or unwilling to continue with the purchase of the property;
• the initial mortgage lender’s valuation is less than 90% of the sum you have offered for the property which has been accepted by the vendor;
• prior to the release of funds the mortgage lender insists on rectification work to the property and the cost exceeds 10% of the sum offered by you which has been accepted by the vendor;
• the mortgage lender applies a retention on the loan which is more than 10% of the sum offered by you which has been accepted by the vendor; or
• the property is damaged during the period of cover and the cost of rectification work exceeds 10% of the property value.

So if after 6 months the purchase is still ongoing, the insurance will expire. You can't transfer it to other properties either. There are other exclusions, the usual stuff.