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Indemnity Insurance in plane English?

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tadaska
tadaska Posts: 57 Forumite
Part of the Furniture 10 Posts Combo Breaker
in Mortgages & endowments
Hi,

I had no luck of getting an explanation over the phone from my Solicitors (they are based up North)...

"...it has come to our attention that an indemnity insurance policy will be required due to a defected lease..."

"In respect of the lack of mutual enforcement covenants contained within the lease."

Can some one explain in plain English what that means?

Comments

  • dunstonh
    dunstonh Posts: 119,687 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Indemnity Insurance in plane English?

    plain ;)
    Can some one explain in plain English what that means?

    Basically to cover backsides if something goes wrong and money is required to put it right.

    Same may argue that it is a money maker for solicitors as they never used to have indemnity insurance to degree they do now. However, the UK is much more litigious than it used to be (also to the benefit of solicitors)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    dunstonh wrote: »
    Same may argue that it is a money maker for solicitors as they never used to have indemnity insurance to degree they do now. However, the UK is much more litigious than it used to be (also to the benefit of solicitors)

    It's to protect the lender against the devaluation of the security they hold.

    Compared to the cost of time involved in resolving the matter fully far simply way of dealing with issues. Doesn't delay the (chain) process either.
  • dunstonh
    dunstonh Posts: 119,687 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It's to protect the lender against the devaluation of the security they hold.

    So, its the lenders driving it?

    It just seems that nowadays there are far more required than there used to be.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • minimike2
    minimike2 Posts: 2,210 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    tadaska wrote: »
    (they are based up North)...



    Can I ask what difference that makes?
  • Mortgage_Mark_2
    Mortgage_Mark_2 Posts: 857 Forumite
    minimike2 wrote: »
    Can I ask what difference that makes?

    One would assume from OP using the phrase 'up north' that he/she is based in the south, and therefore the solicitor is contactable by phone/email only, making explanations like this a little more difficult.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • amnblog
    amnblog Posts: 12,728 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    This is less about the Insurance or the English and more about establishing what is the complication with the lease.


    Could be walk away time.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreet
    kingstreet Posts: 39,256 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    minimike2 wrote: »
    Can I ask what difference that makes?
    Potential dragon and sea-monster activity north of Watford Gap? ;)
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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