Selling house and have been asked for an indemnity policy

AnotherJoe

davidmcn wrote: »

The concern will be building regulations, not planning.

Fair enough but how would anyone know especially since it woudl be with regulations as the were 10+ years ago.

Ithaca

We paid £200 for an indemnity policy to cover some potential inaccuracies in the deeds to our house when we bought it.

We also paid around £60 for an indemnity policy to cover some missing chimney breasts in the house we were selling (which had also been done at some point in the distant past).

Both policies were totally unnecessary from a practical point-of-view but the former will make life easier if / when we come to sell, and the latter was a small price to pay to push the sale to completion (rather than lose another 2-3 with solicitors exchanging letters we opted to chuck £60 at it).

Davesnave

Most people's concern should be that structural work has been done properly, not that some council bod will spot something amiss (how?) and give themselves an extra job.

An indemnity policy is even more useless in that regard.

davidmcn

AnotherJoe wrote: »

Fair enough but how would anyone know especially since it woudl be with regulations as the were 10+ years ago.

Sometimes it's obvious that the work is historic, but often not - and if there's no paperwork, how do you know that the work is 10+ years old? Are you going to believe the seller?

lincroft1710

Davesnave wrote: »

Most people's concern should be that structural work has been done properly, not that some council bod will spot something amiss (how?) and give themselves an extra job.

An indemnity policy is even more useless in that regard.

^ ^ ^ ^

This is soooo true!

If there is anything that comes close to a lawful scam, it is an indemnity policy.

rabialiones

would it make any difference if the house was freehold/leasehold

if its freehold would you still need the indemnity policy?

AdrianC

rabialiones wrote: »

would it make any difference if the house was freehold/leasehold

No, because the risk being insured is the legal costs should a lack of building regs ever come to light, nothing whatsoever to do with any issues from the freeholder of a leasehold property.

if its freehold would you still need the indemnity policy?

It's EVERY BIT as valuable and essential as on a leasehold...

Basically, your decision is whether to humour the buyer, or try to educate them and risk losing the sale for a few tenners.

rabialiones

does indemnity policy cover clauses in deeds
i.e. if there has been any breach?

AdrianC

rabialiones wrote: »

does indemnity policy cover clauses in deeds
i.e. if there has been any breach?

Indemnities cover the legal costs for whatever you buy them to cover. About the only prerequisite is that "the other side" hasn't already been made aware - so if it's a potential planning/BR breach, then the council. If it's a potential leasehold breach, then the freeholder. If it's a potential covenant breach, then the beneficiary.

Thrugelmir

Davesnave wrote: »

Most people's concern should be that structural work has been done properly, not that some council bod will spot something amiss (how?) and give themselves an extra job.

An indemnity policy is even more useless in that regard.

Indemnity policy is protect the mortgage lenders security. That's all.