indemnity policy ?????????

rabialiones

i am in considering purchasing indemnity policy, however one of the clauses/assumptions is that ground rent is upto date.

neither we , nor the previous owners paid the ground rent of £3 , as it was never requested/collected.

would this invalidate the policy for everything or just the ground rent.

any help appreciated.
thanks

00ec25

how do you expect an answer when you have not explained what the indemnity policy is to cover or why you think you need one?????????????

pay whichever is cheaper: £3 of ground rent or a policy premium ?????????

rabialiones

sorry for not explaining clearly.
its for breach of leasehold covenants re alterations/extensions etc on house purchase.
policy is around £75 ,
needed mainly for porch on side of house as no paperwork can be found, seller says it was there prior to their purchase.

they have never had a demand for the ground rent, so dont know who to pay to

csgohan4

Land registry may have the details of who the ground rent goes to

rabialiones

solicitor never received reply from freeholders

davidmcn

Your solicitor should be advising you about this. Have you asked them?

G_M

So there is an alteration which contravenes the lease, and for which there is no freeholder's consent.

The risk you wish to protect yourself against is the possiblity of the freeholder forcing the removal of the alteration.

An indemnity policy would not prevent enforcement, but would pay out to cover the associated costs.

However a clause in the policy requires the ground rent to be up to date - presumably either when the policy is taken out? - or when a claim is made?

Ground rent is in arrears. I can therefore predict that the insurance company would not pay out (unless the clause relates to GR being up to date at the date of the claim, and you have by then paid the arrears).

rabialiones

i think its when the policy is taken out,
but, how can i pay ground rent when the there is no indication as to who to pay it to, as it has never been paid due to no requests being made

so , if this is the case would it mean that the policy cannot be taken out, or would be invalid.
in which case would it be invalid for the just the ground rent or for the whole policy including the alterations
or the seller could say it is upto date with payments and then pay the full amount outstanding if any requests are made

xylophone

but, how can i pay ground rent when the there is no indication as to who to pay it to

What does your lease or sub lease say on this point?

rabialiones

seller does not have lease to hand , but says its some duke and £3 annual ground rent payable

xylophone

You have purchased a leasehold house?

neither we , nor the previous owners paid the ground rent of £3 , as it was never requested/collected.

You have made an offer on a leasehold house?

seller does not have lease to hand , but says its some duke and £3 annual ground rent payable

Which of the above?